Gasoline and diesel prices are currently heading for a painful hike in early March.
The price of 95 unleaded petrol is set to rise by R1.36 per liter, while wholesale diesel prices are expected to rise by R1.43 to R1.58 per liter, according to the latest estimates from the Central Energy Fund (CEF). . .
Glowing paraffin costs almost a rand more.
Oil is priced in dollars, so fuel prices in South Africa are primarily determined by international oil costs and the rand exchange rate.
Brent crude oil has risen from $77 per barrel at the beginning of the month to its current level of $81.
The Ministry of Mineral Resources and Energy previously said oil prices were on the rise, partly due to attacks on oil cargoes in the Red Sea, and due to shipping companies rerouting oil cargoes around the Cape of Good Hope. Shipping costs have increased as the route is much longer. Cold waves in the United States also affected production.
However, while oil prices have been supported by production cuts by major producers, the International Energy Agency said this week that while countries such as the United States and Brazil are increasing production, oil demand is losing momentum, and all oil markets could be in the black. It was announced that there is a sex. Year.
The rand hit R19.21 to the dollar earlier this week, up from R18.57 to the dollar at the start of the month, on concerns that U.S. interest rates would not be cut as quickly as expected. The trading price on Thursday afternoon was R18.96.
Final prices will only be determined at the end of February, so the petrol and diesel price outlook may change during the month.
The Automobile Association said in a statement that the large price hikes expected in March will result in an increase in fuel prices to establish whether the Ministry of Mineral Resources and Energy can amend elements within the current pricing model to mitigate cost increases. He said that this confirms that a review is necessary. . Diesel prices in particular need to be reviewed, as increased input costs will be recovered through higher prices of consumer goods.
“Furthermore, we once again urge the Chancellor of the Exchequer to strongly consider not increasing the General Fuel and Road Accident Fund levy in his Budget speech on 21 February. It will be welcomed.''The consumer base is already reeling from economic hardship,'' the AA said.
At the beginning of February, the price of unleaded petrol in both grades (93 and 95) was increased by 75 cents per liter, making the price of 95 unleaded petrol in Gauteng R23.24 per liter, while the price on the coast was R22.52. Reached.
The wholesale price of diesel rose by 70 cents to 73 cents, with diesel prices in Gauteng rising to R21.36 per liter and coastal prices rising to R20.64.