Petrol prices in March are expected to rise by a minimum of R1.25 per litre, while diesel prices are expected to increase by a minimum of R1.32 per litre.
This is according to mid-month fuel price data released by East Cape Fuels, as reported by BusinessTech.
The data covers the period from the start of February to the 15th, with the expected changes largely driven by a rise in international petroleum prices.
The expected price increases for all types of fuel in South Africa in March are as follows:
- Petrol 93 – Increase of R1.25 per litre
- Petrol 95 – Increase of R1.26 per litre
- Diesel 0.05% – Increase of R1.32 per litre
- Diesel 0.005% – Increase of R1.34 per litre
- Illuminating Paraffin – Increase of R1.26 per litre
If current market conditions persist, these changes will come into effect on the first Wednesday of March and will see local fuel prices reach new record highs. The previous record-high was in December 2021.
However, the Department of Energy (DOE) has said that the mid-month snapshots do not take all the factors into account and that conditions can change before month-end.
The DOE makes adjustments at the end of the month and takes any possible slate levy adjustments and retail margin changes into account, which the mid-month snapshot does not.
Factors affecting South African fuel prices
South African fuel prices are mainly affected by the rand/US dollar exchange rate and changes to international petroleum costs, which is heavily reliant on oil prices.
At mid-February, the rand showed surprising strength and contributes to an over-recovery of around 14 cents and 15 cents per litre for petrol and diesel, respectively.
Rising international petroleum costs are, therefore, the biggest driver behind the expected fuel price increases, with diesel seeing an under-recovery of at least R1.46 per litre and petrol R1.40 per litre because of this.
Global oil prices have been rising due to a possible conflict between Russia and Ukraine, which “could result in huge increases in fuel prices globally and negatively affect local consumers and transport users,” said energy minister Gwede Matashe.
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