Over the past three years, South African fuel prices have seen unprecedented increases, despite no adjustments to the General Fuel Levy or Road Accident Fund levy by the government. According to unaudited data from the Central Energy Fund (CEF), the price of Unleaded 93 petrol inland rose from R21.51/litre in May 2022 to R23.01 in May 2023. Current projections from the CEF indicate another significant increase of 37c/litre in May, bringing the price close to R25.15/litre.

The outlook for Unleaded 95 petrol inland is equally grim, with a projected increase of 38c/litre. This will push the price of this fuel to around R25.50/litre, surpassing the R25.42 mark seen in August 2022, though not reaching the record price of R26.74/litre in July of that year. Despite these challenges, diesel prices will decrease by 35c/litre, while illuminating paraffin will drop by 28c/litre.

The Automobile Association (AA) notes that the decrease in diesel prices will alleviate input costs across various sectors, thus mitigating potential increases in consumer prices.

The fluctuations in international product prices result from the looming price hikes in this cycle. The rand’s stability against the US dollar in the early part of the month has provided some relief, though tensions in the Middle East could exert significant pressure on the local currency in the coming weeks, potentially impacting fuel prices in May.

“As we approach the new month, it’s crucial to monitor these indicators closely,” advises the AA.

The AA emphasises the need for a review of the fuel price structure by the Department of Mineral Resources and Energy to identify potential revisions that could help offset rising costs.

Source: AA / Photos: Caxton library.