Next week’s petrol hikes may be smaller than previously feared
According to the latest data from the Central Energy Fund, petrol and diesel prices currently look set for large increases on Wednesday next week – but not as big as previously expected.
Based on the current data, 95 octane petrol is set to increase by R1.84/litre, 93 octane is expected to climb by R1.76/l, diesel by between R2.98/l and R3.14/l and illuminating paraffin by R2.51/l.
The expected petrol price hikes have moderated thanks to a falling oil price and a firming rand.
Earlier in March, an increase of up to R2.15 was expected in the price of petrol.
Local fuel prices are determined by international oil prices, as well as the dollar-rand value, as South Africa buys oil in dollars.
Oil prices have been soaring over the past month amid the fallout from Russia’s invasion of Ukraine. Russia is the world’s third-largest producer of crude oil, and the expectation that it will be locked out of the market has caused a surge in oil prices. Traders are scrambling to secure oil supplies with Russia, unable to deliver some of its oils due to shipping and banking restrictions.
But after Brent oil was pushed close to $140 a barrel earlier in the month, it has now fallen back to around $110.
The market has been encouraged by peace talks between Russia and Ukraine, as well as Russia’s offer to "fundamentally cut back" its attacks in northern Ukraine. In addition, new pandemic lockdowns in China are expected to cool fuel demand. Millions of people in the eastern half of Shanghai are currently confined to their homes.
The rand has also seen strong gains: it is currently trading at around R14.46/$, its best level since October last year - after almost touching R15.40 earlier in the month.
Comments
Research Reports
Latest Multimedia
Latest News
Showroom
At John Ratcliffe, we are aftermarket specialists for heavy-duty on and off-road vehicles. We engineer and retrofit advanced safety systems, engine...
VISIT SHOWROOM
John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
