There is some more bad news for motorists, as fuel prices are set to increase significantly in March, after the February increase which has just kicked in.
Mid-month data released by the Central Energy Fund (CEF) has revealed that South Africans will face a substantial fuel price surge next month.
At this stage, the petrol price could increase by R1,30 per litre, while diesel prices are forecast to increase by between R1,40 and R1,60 cents per litre.
This comes after February’s increase of over 70 cents per litre for both petrol and diesel.
The increases in fuel prices, after a slight reprieve in January, are primarily due to the rand weakening against the dollar and Brent Crude oil prices increasing in recent months.
These are the expected changes for March, according to CEF data:
- Petrol 93: increase of 135 cents per litre
- Petrol 95: increase of 131 cents per litre
- Diesel 0.05% (wholesale): increase of 143 cents per litre
- Diesel 0.005% (wholesale): increase of 159 cents per litre
- Illuminating paraffin: increase of 96 cents per litre
There is no daily spot price for LP Gas.
If the current expectations of fuel price increases are realised, this is how much more motorists will pay for fuel:
| Inland | February Official | March Expected |
| 93 Petrol | R22.92 | R24.23 |
| 95 Petrol | R23.24 | R24.59 |
| Diesel 0.05% (wholesale) | R21.36 | R22.79 |
| Diesel 0.005% (wholesale) | R21.43 | R23.02 |
| Illuminating Paraffin | R15.84 | R16.80 |
| Coastal | February Official | March Expected |
| 93 Petrol | R22.20 | R23.51 |
| 95 Petrol | R22.52 | R23.87 |
| Diesel 0.05% (wholesale) | R20.64 | R22.07 |
| Diesel 0.005% (wholesale) | R20.74 | R22.33 |
| Illuminating Paraffin | R14.91 | R15.87 |
The hike in fuel prices will have a knock on effect across the value chain as retailers also spend billions of rand on diesel to transport goods, which they will have to pass on to the consumer.
As a result, inflation will also be impacted, which does not bode well for interest rates.
Experts have urged consumers to consider car pooling, to shop around for deals on food, and to use loyalty programmes in order to absorb the increases in fuel prices.
The Automobile Association has expressed concern as it will undoubtedly put more pressure on already stretched consumers.
“These hefty increases also reaffirm our belief that a review of the fuel price is necessary to establish if any components within the current pricing model can be revised by the Department of Mineral Resources and Energy (DMRE) to mitigate against rising costs, especially for diesel as higher input costs will be recovered through higher prices at the till.
“In addition, we again call on the Minister of Finance to strongly consider not increasing the General Fuel and Road Accident Fund levies in his Budget Speech on 21 February. Any relief – even in the form of non-increases – would be welcome to a consumer base already reeling from economic hardship,” the AA concluded.
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