What this means at the pumps is that a litre of 95 Unleaded petrol will now cost you R23.82 per litre at the coast and R24.54 in the inland regions, where 93 Unleaded now rises to R24.14
As has been the running theme since the start of the month, South African motorists need to brace for a hefty price hike at the pumps in September.
Mid-month data from the Central Energy Fund is currently pointing to a massive petrol price hike of R1.35 to R1.40 per litre next month, while diesel has a much bigger hike on the cards of around R2.60 per litre.
If these prices follow through to the end of the month, motorists will see fuel prices climb back over R23 per litre.
These are the expected changes:
- Petrol 93: increase of 136 cents per litre
- Petrol 95: increase of 139 cents per litre
- Diesel 0.05%: increase of 260 cents per litre
- Diesel 0.005%: increase of 259 cents per litre
- Illuminating paraffin: increase of 253 cents per litre
Daily snapshot data for LP Gas is not presented by the CEF.
The Department of Mineral Resources and Energy (DMRE) has noted that its daily snapshots are not predictive and do not encompass other possible modifications, such as slate levy adjustments or retail margin changes. The department determines these adjustments, considering various factors, at the end of the month.
Domestic fuel costs are primarily governed by the rand/dollar exchange rate and international oil prices. In South Africa, the fuel price is adjusted on the first Wednesday of every month based on these two factors.
Unfortunately for South African motorists, both of the key factors impacting local fuel prices are working against them leading up to September.
Market conditions have hammered the rand so far in August, sending the unit back above R19 to the dollar and keeping it squarely on the back foot.
The reasons for the rand’s poor performance are varied – from local issues that persist, like load shedding and dampened businesses and consumer sentiment, to global markets being in a risk-averse mindset.
According to local economists, the rand’s positioning is more a result of the global risk aversion, however, with Investec chief economist Annabel Bishop noting this week that the ‘summer holiday’ period in the northern hemisphere is contributing to this.
Economists at Nedbank noted that the rand’s weakness mainly reflects the impact of a stronger US dollar, which continues to drift higher, while also flagging local problems around the Cape Town taxi strike and generally flat economic data pointing to marginal growth in 2023.