Massive petrol price increases expected for April

Mid-month data from the Central Energy Fund shows that petrol prices are expected to increase by at least R2.19 per litre in April, with diesel prices expected to increase by a minimum of R3.12 per litre, reported BusinessTech.

The substantial increases in prices is largely a result of rising international petroleum prices due to the conflict between Russia and Ukraine, as Russia is a major oil producer.

The expected fuel price adjustments for April are as follows:

• Petrol 93 – Increase of R2.19 per litre
• Petrol 95 – Increase of R2.27 per litre
• Diesel 0.05% – Increase of R3.12 per litre
• Diesel 0.005% – Increase of R3.26 per litre
• Illuminating Paraffin – Increase of R2.66 per litre

It must be noted that this data only covers the period from 1-14 March.

The Department of Energy makes the official fuel price adjustments at the end of every month, which also takes into account the slate levy, retail margin changes, and the complete month’s data.

As such, these expected adjustments can change significantly before month-end.

“Artificially high” petrol prices

This price increase predictions follows Solidarity accusing the government of abusing its power by “keeping fuel prices artificially high” through price regulation.

Solidarity acknowledged that the conflict in Europe has affected fuel prices, but it argues the government still cannot justify the recent price hikes.

“Apart from the exchange rate and the international oil price that currently make up just under half of the final petrol price, all aspects of the petrol price are determined by the state,” said Theuns du Buisson, economics researcher at the Solidarity Research Institute.

Solidarity has drafted a petition to South Africa’s parliament in an effort to deregulate and lower fuel prices, stating that prices should be determined by market forces.

Following this move, the Central Energy Fund and the government have scheduled a meeting for 15 March in which the two parties will discuss possible interventions to assist with managing local fuel prices.