Preliminary figures from the Central Energy Fund (CEF) indicate that fuel prices could rise considerably in October 2023, affecting a broad range of South African motorists.
The Central Energy Fund’s early projections arrive in the wake of significant fuel price hikes this week. These increases have been attributed to Russia and Saudi Arabia reducing their oil production and committing to maintain these cuts until the end of 2023. These actions have resulted in the strengthening of the U.S. dollar against the South African rand.
Projected Price Changes
According to the CEF’s latest data, as of Monday, September 11, 2023, the following fuel price changes are projected:
- Petrol 93: Increase of 122 cents
- Petrol 95: Increase of 128 cents
- Diesel 0.05%: Increase of 222 cents
- Diesel 0.005%: Increase of 208 cents
- Illuminating Paraffin: Increase of 206 cents
Should these market conditions hold steady throughout the month—a scenario many experts find unlikely given the ever-changing rand/dollar exchange rate and fluctuations in oil prices—motorists using petrol 93 octane can expect an increase of 122 cents. Users of petrol 95 will likely see a hike of 128 cents, while diesel users could see an increase ranging between 208 to 222 cents per litre.
Key Factors Impacting Fuel Prices in South Africa
Fuel prices in South Africa are primarily influenced by two main elements:
- The international price of petroleum products, mainly determined by oil prices.
- The rand/dollar exchange rate, which dictates the purchase price of these products.
Current Market Conditions
As of this writing, the Brent crude oil price stands at $90.89 per barrel, and the rand/dollar exchange rate is R18.88/$.
What Lies Ahead
The definitive price changes for petrol and diesel are yet to be confirmed. These figures will be finalized in the coming weeks, and the new prices are expected to be effective from midnight on Tuesday, October 3.
Current Fuel Prices for September 2023
For a comprehensive understanding of the looming changes, here are the existing fuel prices for September 2023:
Inland
- Petrol 93: R24.14
- Petrol 95: R24.54
- Diesel 0.05%: R23.05
- Diesel 0.005%: R23.28
- Illuminating Paraffin: R17.41
Coastal
- Petrol 93: R23.42
- Petrol 95: R23.82
- Diesel 0.05%: R22.32
- Diesel 0.005%: R22.57
- Illuminating Paraffin: R16.49
These preliminary figures are causing unease among South African motorists who are already grappling with economic challenges. It remains to be seen how these possible price adjustments will impact the everyday lives of citizens and the broader South African economy.
