September petrol price hike likely to be highest since July last year
The increases to diesel prices will be record hikes.
South African motorists have been warned to brace for massive petrol price hikes when the department of mineral resources and energy (DMRE) adjusts fuel prices for September.
Commenting on unaudited data from the Central Energy Fund (CEF), the Automobile Association (AA) said the hikes to petrol prices will be highest since July last year, while the increases to diesel prices will be record hikes.
Highest petrol price hike in a year
According to the CEF’s data, petrol is expected to climb by between R1.59/litre for ULP93 and R1.65/l for ULP95. The wholesale price of diesel is expected to increase by a whopping R2.85/l.
Considering these potential increases, the price of a litre of ULP95 inland will rise from R22.83 to R24.48/l while the price of ULP93 will increase from R22.43/l to R24.02/l.
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“Both these prices are in line with prices last seen in August last year but not at the record highs seen in July 2022,” said the AA.
In the case of diesel, the hikes will push the suggested wholesale cost of this fuel from its current R20.21/l to R23.06/l, the highest it has been since December last year.
Illuminating paraffin prices are also slated to increase significantly by as much as R2.80/l, pushing the cost of this fuel to R17.43/l inland and R16.50/l at the coast.
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The expected increases are largely being driven by higher international oil prices which have risen on the back of slow demand and decreased output.
Motorists to feel pinch
According to the CEF’s data, higher international oil prices are contributing between 80% and 88% to the expected increases with the weaker Rand/US Dollar exchange rate contributing the rest.
“While the Rand has weakened on average against the Greenback in August, it’s not a major contributor to the expected increases, that falls squarely on rising international oil prices,” says the AA.
“Motorists will certainly feel the pinch in terms of higher prices at the pumps but consumers across the board can expect higher prices to all goods and services because of these hikes. In this environment we reiterate our advice to motorists that they should keep their vehicles in good mechanical condition and their tyres inflated according to manufacturer’s specifications to ensure optimal fuel usage.”
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“Avoiding heavy traffic, not overloading the vehicle, and minimising driving where possible are other measures to decrease fuel usage fuel consumption,” says the AA.
The AA has called has called for urgent intervention in the RAF levy, which currently comprises R2.18 on every litre of petrol and diesel sold in the country.
“The RAF secures around R42bn in funding annually through the RAF levy on fuel, but citizens derive little benefit from their contributions,” the AA said.
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