South Africans are bracing themselves for another significant fuel price increase in May, with diesel prices expected to rise by around 5.4%, although this could subside to 4.95% if current trends persist. The current fuel price prediction is subject to change, particularly with regards to the temporary tax reprieve that came into effect from April 1, which reduced the General Fuel Levy by R3 per litre.
According to data from the Central Energy Fund, the under-recovery for 93 Unleaded petrol is R1.76, while 95 Unleaded is R2.09. If current price trends continue, South Africans can expect a petrol price increase of around R1.85 per litre. However, the diesel situation is more dire, with a predicted increase of R5.40, which could have a significant impact on the economy.
Fuel Price Predictions for May
The predicted fuel price increase will see 95 Unleaded petrol selling for around R24.38 at the coast and R25.21 in Gauteng, if the R3 per litre tax break is extended into May. However, if the tax break is not extended, motorists will be facing petrol prices of between R27.38 and R28.21. The wholesale price of diesel is expected to rise to around R30.35 at the coast and R31.11 in Gauteng.
Impact on the Economy
The significant fuel price increase will have a knock-on effect on general inflation, with the cost of goods and services expected to rise. The South African rand has remained relatively stable this month, but volatile international oil prices caused by the war in the Middle East have played havoc on the fuel price equation. The price of Brent Crude has rebounded, trading in the $100 to $110 range in the past week.
Here are some key points to consider:
- The temporary tax reprieve reduced the General Fuel Levy by R3 per litre.
- The predicted fuel price increase will see 95 Unleaded petrol selling for around R24.38 at the coast and R25.21 in Gauteng.
- The wholesale price of diesel is expected to rise to around R30.35 at the coast and R31.11 in Gauteng.
For more information on fuel prices, visit the Wikipedia page on fuel prices.
