South African motorists could be facing another fuel price increase in September, just weeks after lower petrol prices helped bring some relief to consumers.
The latest Central Energy Fund (CEF) data is pointing towards increases across petrol and diesel, with diesel facing the biggest jump. Current estimates suggest petrol could increase by around 80 cents to 90 cents a litre, while diesel could rise by more than R3 a litre if current trends continue.
The estimates have worsened during August as international oil prices have risen, putting pressure on South Africa’s fuel-price calculations. The final September adjustment will depend on where oil prices and the rand settle by the end of the month, so the current figures should not be treated as the final prices.
The possible increase comes just days after Statistics South Africa reported some welcome news on inflation. Annual consumer inflation fell from 5% in June to 4.3% in July, marking its first decline in five months. Lower fuel prices were one of the factors behind the slowdown.
Food inflation also fell to 0.9% in July, its lowest level in more than 16 years, giving households some much-needed breathing room.
However, another fuel increase could put some of that relief under pressure. Higher petrol and diesel prices can affect more than just motorists, as transport costs can feed into the prices of goods and services.
For now, South Africans will have to wait until the end of August for a clearer picture of what they will pay at the pumps in September.
If the current CEF estimates hold, motorists should prepare for higher fuel costs next month, with diesel users likely to feel the biggest impact.
