LIMPOPO – Motorists are bracing for a sharp rise in fuel prices next week, with early projections pointing to one of the steepest increases in recent years.

Fuel prices in South Africa are adjusted on the first Wednesday of every month, with petrol regulated by government.

Petrol set to jump by over R5 per litre

Based on the latest data from the Central Energy Fund (CEF), petrol is expected to increase by between R5.17 and R5.72 per litre, depending on the grade.

For the average driver, this translates to roughly R300 more to fill a 60-litre tank.

Diesel could exceed R30 for the first time

Diesel, which is not regulated in the same way as petrol, is expected to see even steeper increases.

Current underrecovery figures suggest hikes of more than R9.50 per litre, with projections indicating increases of around R9.67 for 500ppm diesel and R9.81 for 50ppm diesel.

If these estimates materialise, diesel prices could exceed R30 per litre for the first time.

Global instability drives price hikes

The increases are largely being driven by ongoing instability in the Middle East, which continues to impact global oil markets.

Although oil prices have shown signs of easing in recent days, these changes are unlikely to significantly affect April’s fuel price adjustments due to the timing within the monthly pricing cycle.

Local levies add to pressure at the pump

In addition to global oil prices and the rand-dollar exchange rate, several local factors also contribute to the final price at the pump.

These include distribution and transport costs, as well as regulated wholesale and retail margins.

Taxes and levies, such as the general fuel levy, Road Accident Fund levy, carbon tax and pipeline tariffs, are also set to increase in April, adding a further 21 cents per litre.

While relatively small compared to the overall hike, these adjustments will add to the pressure on consumers.

South Africa remains heavily reliant on imported fuel, limiting the government’s ability to cushion consumers from global price shocks.

 Although measures such as adjusting levies have been considered in the past, no immediate interventions have been announced.

No national fuel shortage, say officials

Authorities have moved to reassure the public that there is no national fuel shortage, despite reports of some service stations running dry.

Officials attribute these localised disruptions to increased demand, as motorists and bulk buyers rush to fill up ahead of the anticipated price hikes.

What it means for Limpopo

At present, inland fuel prices apply across Limpopo, with 95 Unleaded petrol currently sitting at around R20.30 per litre in Polokwane and surrounding areas. Projections indicate this could rise to approximately R26.23 per litre in April, bringing fuel prices close to record highs.

For a province like Limpopo, which is economically reliant on agriculture, the sharp increases in diesel used for machinery and transport may see production costs rise for farmers.

The knock-on effect will be felt at supermarkets and local shops, and ultimately by consumers.

Businesses, especially those reliant on logistics and deliveries, may also be forced to adjust pricing to absorb higher operating costs.

In Tzaneen, the increases are expected to also hit commuters, with workers travelling daily from surrounding areas like Nkowankowa, Lenyenye, and Dan Village. They may face higher transport costs as taxi fares are also likely to rise in response to the fuel price increase.

Overall, the fuel hike is expected to put additional pressure on already stretched household budgets in the province, with rising transport and food prices likely to drive up the cost of living in the weeks ahead.