Rising international petrol prices have left South Africans facing substantially higher fuel prices in March. This is according to the unaudited month-end fuel price data released by the Central Energy Fund.
The rand/dollar exchange rate worked slightly in South Africa’s favour during February, giving savings of up to 9c/ℓ. Unfortunately, this advantage has been shouldered aside by fuel prices rising off the January plateau with considerable advances.
The fuel price hikes come as toll fees across the country increased from 1 March, while increases to the General Fuel and Road Accident Fund levies will apply in April. An additional fuel price tax – the Carbon tax – will come into force in June when a further 9c/ℓ will be added to the petrol price and 10c/ℓ to the price of diesel.
In the medium term, we expect world supply to slightly outstrip demand as the US continues to make impressive progress with domestic oil production. However, petrol prices remain vulnerable to geopolitical shocks and we cannot rule out further price hikes for the remainder of the first half of the year. – AA