Another fuel price hike looms

By Xpress Reporter

Overburdened South African motorists face another pain in March, as the latest data from the Central Energy Fund indicates that fuel prices will increase once again.

The expected increase shall apply to all grades of fuel, with a R1.26 and R1.20 increase anticipated for 93 and 95 grades, respectively. Diesel users will not be spared, as diesel 0.05% is expected to attract an increase of 37 cents per litre, with diesel 0.005% expected to go up by 38 cents per litre. Illuminating paraffin is also expected to increase by 41 cents per litre.

The latest increase forecast is attributed mainly to the ongoing volatility in the global oil market, and the further weakening of the Rand. The local currency is currently on a nosedive, due to two factors, viz tough global conditions and, on the local front, political uncertainty and waning public confidence in President Cyril Ramaphosa.

In the first two weeks of February, oil prices and the local currency have been working against motorists, with both factors contributing to an overall under-recovery in fuel prices. Oil prices, which contribute to the movement in international product prices, have gradually started rising, while the Rand has weakened significantly against the dollar.