Another major R2/l fuel price hike is already looming for October

Spring has sprung, bringing with it hefty fuel price hikes across the board. If you hoped that September would bring a clean slate, you don’t understand how this game works. The Central Energy Fund’s (CEF) latest predictive snapshot (captured 3 September) tells us that Saffas are in for another nasty shock at the pumps in October.

When will it end?

These are, however, early days. The Department of Mineral and Petroleum Resources (DMPR) typically adjusts the country’s fuel prices on the first Wednesday of a new month. That’ll fall on 7 October, leaving plenty of time for things to turn around. See, the CEF’s figures (below) are not final and are subject to change.

For better or worse, depending on the situation. The CEF, in conjunction with the DMPR, tracks the economic factors that influence the price of fuel locally. The deciding factors are the price of oil globally and the Rand/US Dollar exchange rate. With the direction oil prices are currently headed… Let’s just say we’re not hopeful.

Especially if the price of oil remains fixed above the $90/barrel mark it’s currently at. “Normal” pre-war prices usually hover around $70/barrel, which led to the significant fuel price decreases in February before the US-Iran War kicked off at the end of that month. Saffas have experienced regular price hikes since then, ’til the National Treasury stepped in to offer a small amount of relief. That’s no longer happening, resulting in more hikes.

Until the price of oil begins to decline — likely as a result of a major shake-up in the US-Iran War — it looks like we’re stuck with the rising fuel costs. As it stands, petrol is selling for R26.76/l, while diesel hovers around the R30/l mark. We’ll keep you updated on the coming changes for October throughout the month.