Petrol and diesel on track for painful increases this September

With the first half of August now behind us, it’s time to take a look at the mid-month fuel price data, provided, as ever, by the Central Energy Fund (CEF). Perhaps the only good news we have to share about the incoming September fuel price adjustments is that the latest estimates aren’t quite as wicked as they were a week ago.

In some areas, anyway. Diesel prices are showing signs of a slight recovery compared to last week, though the expected R2+/l increase is still a tough pill to swallow. Estimates for the price of petrol have actually worsened since, though the R0.74/l increase isn’t nearly as bad as it could be, considering, you know… gestures broadly.

Not looking good…

Of course, there’s still time for things to improve in the coming weeks. Or, indeed, head in the other direction. The CEF, in conjunction with the Department of Mineral and Petroleum Resources (DMPR), gathers data relating to the economic factors that influence the price of fuel locally, providing an accurate glimpse of what’s to come.

The DMPR then officially adjusts the country’s fuel prices on the first Wednesday of the following month. In this case, that’ll fall on Wednesday, 2 September. It typically confirms the coming adjustments the previous Monday or Tuesday, offering residents enough time to plan accordingly. In this case, you’ll want to top up ahead of time.

One of the biggest deciders when it comes to fuel prices is the average price of oil globally. With the IS-Iran War still raging on, oil reserves are drying up, thus sending the price up. At the time of writing, oil prices are currently hovering around $88/barrel, far above the pre-war averages of $70/barrel. The Rand, on the other hand, has strengthened, leading to the reduced (but still high) price increases expected for the month of September.