The Central Energy Fund announced that an increase in the price of fuel will be implemented from Wednesday the 2nd of March.
To the dismay of many motorists, 93 and 95 unleaded is expected to increase by R1,46 per litre. According to the Automobile Association (AA), this increase will set the inland price of a single litre of 93 unleaded petrol at R21,35 and 95 unleaded petrol at a record high of R21,60. Coastal prices for 93 unleaded are expected to rise to R20,83 per litre while 95 octane will be priced at R20,88 per litre. Diesel is also set to increase by between R1,44 and R1,48 per litre.
According to the Central Energy Fund, in the period between the 28th of January and the 24th of February 2022, there was an increase in the average international product price of petrol and diesel. The steep fuel price increase had been partially driven by the change in the South African Rand/US dollar exchange rate which increased from R15,23 to R15,50.
The Automobile Association has warned that continued military action by Russia in Ukraine would affect oil prices and could result in further increases. Mirroring the statement made by the AA, the department of mineral resources and energy announced that the rising prices of crude oil – coupled with the conflict in Ukraine – was the reason for the escalating fuel prices in South Africa. After Russia invaded Ukraine last week, oil reportedly rose to above $100 per barrel.
The tail-end of 2021, specifically November 2021, was a tense period for motorists. Experts warned of an inevitable petrol price increase which would result in 95 octane prices hovering around R19,54 per litre, according to StasSA. Eclipsing the prices of 2021, the first quarter of 2022 now see fuel prices at their highest recorded point in history. While the increase in fuel prices causes many motorists a great deal of stress, the AA has stated that any increases in the price of fuel for April will not be added to fuel taxes. Finance Minister Enoch Godongwana announced that Road Accident Fund levies will not increase this year. Minister of Mineral Resources and Energy, Gwede Mantashe has reportedly engaged with the Finance Minister to discuss the future of the fuel price in South Africa.
