Fuel price shock: Here’s how much more petrol might cost you in April
· Citizen
The Central Energy Fund (CEF) predicts motorists will be hit with hefty petrol and diesel increases in April as tensions in the Middle East continue to escalate.
CEF calculates the daily basic fuel price using global oil prices and the rand exchange rate.
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However, the state energy company doesn’t publish petrol price forecasts. Instead, analysts watch the daily over/under-recovery figures to estimate whether prices might rise or fall before the government announces the official monthly changes.
ALSO READ: SA could be a big loser in Middle East conflict: Oil surges, stronger dollar hits rand
Petrol and diesel price increase
Predictions released on Thursday suggest South Africans can expect an increase of R2.41 for petrol 95, R2.28 for petrol 93, and about R4.40-R4.50 for diesel.
New petrol prices kick in at 00:01 on the first Wednesday of every month.
If market conditions remain roughly the same and the Middle East conflict lasts longer, motorists can expect petrol prices to increase on 1 April, the same day as the fuel levy hike is set to kick in.
Fuel levy hike
Finance Minister Enoch Godongwana announced a fuel levy hike during his budget speech in February.
The fuel levy is a tax charged on every litre of fuel sold, with a portion going to the government and another to the Road Accident Fund (RAF levy) to compensate victims of motor vehicle accidents.
Taking into consideration the general fuel levy, RAF levy, and carbon levy increases, motorists will have to pay 35 cents extra for a litre of petrol, while diesel will cost 38 cents extra per litre.
ALSO READ: No peace for your bond: Will Middle East conflict force Reserve Bank to halt interest rate cuts?
Here’s how much petrol will cost
These are the prices of petrol and diesel for March:
- 93-octane petrol – R20.19 (Inland)
- 95-octane petrol – R20.30 (Inland) / R19.47 (coastal)
- Diesel 500ppm – R18.53 (inland)/ R17.70 (coastal)
- Diesel 50 ppm – R18.60 (inland)/ R17.84 (coastal)
Using the current prediction for April, including the fuel levy hike, here’s how much you could pay per litre:
- 93-octane petrol – R22.82 (Inland)
- 95-octane petrol – R23.06 (Inland) / R22.23 (coastal)
- Diesel 500ppm – R23.31 (inland)/ R22.48 (coastal)
- Diesel 50 ppm – R23.48 (inland)/ R22.72 (coastal)
It is worth noting that the government only publishes a recommended wholesale diesel price, while retailers are free to set their own pump prices.