Fuel prices are expected to increase even as South Africans begin to experience some relief from inflation after the consumer price index (CPI) dipped to 4.7% in July.
Unaudited data from the Central Energy Fund (CEF) at the end of the month provides us a decent sense of what to expect even though the Department of Mineral Resources and Energy won’t issue the official gasoline and diesel prices until early next week, with the modifications taking effect on September 6th.
Shocking fuel prices: R24 per liter for regular unleaded starting next week!
What can we infer from the CEF statistics?
According to IOL, CEF data suggests the considerable under-recovery for gasoline is pointing at increases of R1.65 for 95 Unleaded and R1.60 for 93 Unleaded. For diesel, price hikes are predicted to fall somewhere in the region of R2.76 (50ppm) to R2.85 (500ppm).
Keep in mind that even though this unconfirmed data is usually a very accurate predictor of impending price revisions, final prices could still differ due to factors like the Slate Levy, which compensates fuel businesses for fluctuations in the price of oil during the month.
READ MORE: HUGE FUEL PRICE INCREASE on the Way in 7 DAYS
However, if the above predictions turn out to be accurate, starting in September 95 Unleaded gasoline will cost South African drivers R23.76 per liter around the coast and R24.48 per liter in the interior, while the cheaper 93 Unleaded could see an increase to around R24.03.
If diesel prices go up as expected, the wholesale price of 50 ppm will rise to R22.58 and R23.29 along the coast and to R22.34 and R23.06 inland.
ADDITIONAL READING: Gasoline prices SHOCKER: The upcoming price increase for gasoline and diesel will be THIS SEVERE.
What should you budget for gas this September?
Remember that this does not include retail margins, which might vary from place to location for diesel due to its deregulation but often rest around the R2 price. Therefore, beginning in September, a liter of petrol with 50 ppm will cost around R24.58 on the coast and R25.30 inland.
SA drivers: check back in two weeks for updates on gas and fuel prices.
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