Petrol price hike looms

ALTHOUGH the fuel price sums were looking positive earlier this month, a spike in international oil prices means there won’t be any relief on the petrol cost front.

The latest daily snapshot from the Central Energy Fund (CEF) shows an under-recovery of 34 cents for 95 Unleaded petrol and 32 cents for 93 ULP, but if current trends persist until the end of this week, the final price increase for April could land closer to 40 cents.

There is some good news on the diesel front, with current numbers pointing to decreases of between 28 cents (500ppm) and 33 cents (50ppm).

The wholesale price of 50ppm diesel is currently listed at R21.91 at the coast and R22.61 inland, excluding the retail margin, while 95 Unleaded petrol currently retails at R23,73 at the coast and R24.45 inland, where 93 ULP costs R24.13.

This follows a hefty petrol price increase of R1.21 that came into effect at the beginning of March, with diesel having gone up by between R1.06 and R1.19.

The anticipated diesel price decrease is good news for the economy, says the Automobile Association.

“Diesel is a big input cost in major sectors such as agriculture, mining, manufacturing, and retailing, and an increase here often contributes to increased prices of basic commodities,” the Association pointed out.

International oil prices have edged upwards in the second half of March, testing the $87 mark on Monday as geopolitical tensions took their toll.

According to Reuters, Russia is planning to curb its oil output and recent infrastructure attacks in the Ukraine war have led to further supply fears, outweighing the positive sentiment caused by the UN’s recent call for a ceasefire in Gaza.

South Africa’s official fuel prices will be announced by the Department of Energy early next week and will come into effect on Wednesday, April 3. Stay tuned to IOL for further updates.

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