South Africa’s Central Energy Fund has released new information indicating that there may be a significant increase in the South Africa fuel price during the month of February. In South Africa fuel prices already high and with only two weeks remaining before prices are fixed, the data suggests that 95 unleaded petrol could rise by over R1.20 a litre, while diesel may be hiked by 38c.
Why increases South Africa fuel price is happening
Fuel prices are adjusted on the first Wednesday of each month and are determined primarily by the price of oil and the rand-dollar exchange rate. Brent crude oil is currently at around $85 a barrel, similar to the price a month ago. However, the past month has seen volatile oil prices, influenced by global factors such as the end of Chinese lockdowns boosting demand, Russia’s announcement of oil production cuts, and the possibility of a global recession.
The rand has experienced significant losses in recent weeks, dropping from R17/$ to trading at R18 in recent days. This is due to concerns over the possibility of a large margin hike in US interest rates and uncertainty surrounding the impact of load shedding.
Gauteng petrol prices rose from R20.14 a year ago to R21.68 a litre at the start of February. Diesel prices in the region also climbed, rising from R18.04 in February 2022 to around R21.32 a litre.
The Minister of Finance, Enoch Godongwana, may adjust the general fuel levy and the Road Accident Fund levy during his upcoming Budget Speech in Parliament next week. Any changes made could take effect in April.
People in South Africa have been facing massive fuel price hikes in recent months, worsened by the ongoing war in Ukraine which has increased the international price of crude oil. While there may not be much you can do to control the cost of fuel, there are several strategies you can use to reduce your fuel consumption and lower your overall fuel costs.
Image Credit: Erik Mclean on Unsplash
