New data from the Central Energy Fund (CEF) shows that petrol is now on track for a massive price hike next month that will almost certainly cross the R30 per litre mark.
The CEF’s latest report shows that petrol is looking at an under-recovery of between R2.82 and R3.00 per litre.
Diesel isn’t faring any better, as it is set for an under-recovery of between R2.67 and R3.07 per litre.
These hikes are predicated on the upward movement in the international price of petroleum, which is over $100 per barrel.
These are the CEF’s latest fuel price adjustment predictions as of the end of the fourth week of September:
- Petrol 93 – increase of R2.82 per litre
- Petrol 95 – increase of R3.00 per litre
- Diesel 0.05% (wholesale) – increase of R2.67 per litre
- Diesel 0.005% (wholesale) – increase of R3.07 per litre
The silver lining is that there is still time for fuel prices to recover, as the United States and Iran are negotiating a deal to reopen the Strait of Hormuz.
Brent Crude oil dropped slightly to $106 per barrel today, when representatives from both countries met on the sidelines of the United Nations General Assembly.
Iran has submitted a new seven-day proposal to Washington to reopen the crucial shipping lane if certain conditions are met.
The Islamic Republic maintains that it has sovereignty over Hormuz. The US has imposed blockades of Iran’s ports.
US President Donald Trump says he is open to talks with Iran but that the US doesn’t need to negotiate because of its strong position as a result of its sanctions and blockade.
Until meaningful progress is made to reopen Hormuz, South Africa is looking at an under-recovery in the Basic Fuel Price (BFP) of over R3 per litre for both petrol and diesel.
The only relief is the rand/US dollar exchange rate, which is sitting at R16.32 per USD, resulting in a small over-recovery in the BFP of between 5c and 7c per litre.
The following table shows how fuel prices will be affected in October, based on the current projections:
| Fuel Type | September fuel price | Projected change | Expected fuel price for October |
|---|---|---|---|
| Petrol 93 | R26.76 | + R2.82 | R29.58 |
| Petrol 95 | R26.92 | + R3.00 | R29.92 |
| Diesel 0.05% (wholesale) | R29.11 | + R2.67 | R31.78 |
| Diesel 0.005% (wholesale) | R30.05 | + R3.07 | R33.12 |
Petrol 93 price 28 August – 24 September
Petrol 95 price 28 August – 24 September
Diesel 0.05% price 28 August – 24 September
Diesel 0.005% price 28 August – 24 September
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1 commentsThe president of the states promised to make his country ‘great again at the expense of the world’. The quickest way to achieve this goal is to manipulate the price of oil via a conflict in the Middle East or some other South American country. So its an interesting era for the transition to an electric vehicle. At 11 cents upwards per kilometer VS an ICE vehicle at 150 cents up wards per kilometer. It just makes logically sense.