Earlier this month IOL reported that early month data was pointing to huge fuel price increases for September 2023, affecting both petrol and diesel.
Unfortunately, heading into the final part of the month, the outlook has deteriorated even further.
According to the latest daily snapshot from the Central Energy Fund, 95 Unleaded petrol is looking set to increase by R1.60 per litre, while diesel is in the red to the tune of around R2.75.
Should the above predictions hold true, South African motorists will end up paying around R23.70 for a litre of 95 Unleaded at the coast and R24.43 in the inland regions such as Gauteng, where 93 ULP would rise to around R24.03.
The last time we saw petrol this expensive was in June 2022, when inland 95 ULP hit R24.17 per litre, before rising to a record high of R26.74 the following month.
The wholesale price of 50ppm diesel, meanwhile, is likely to rise to around R22.57 at the coast and R23.28 inland, which is still somewhat below the 2022 record of R25.75.
Keep in mind that the above predictions are based on unaudited data and that the outlook could change between now and month-end.
The official petrol and diesel prices for September 2023 are expected to be announced by the Department of Minerals and Energy Resources on Monday, September 4, with the actual adjustments taking place on Wednesday, September 6.
Everything to become more expensive
The Automobile Association warns that the huge diesel price increase will eventually lead to higher grocery bills, among other things.
“These surges in prices will pile pressure on all diesel users, but particularly large users in the agricultural, retail, manufacturing, and retail sectors. Consumers should brace for increases at the till as costs are recovered through higher prices,” the association said.
The forecast increases come as a result of a weaker South African rand and higher international oil prices.
At the time of writing the local currency was trading at R18.67 to the US dollar, somewhat above its R18.28 average for the previous month, while Brent Crude oil was listed at $84.03.
According to Reuters, oil production cuts by Saudi Arabia and its OPEC⁺ allies are expected to put moderate pressure on oil markets for the rest of this year and into early 2024.