Sadly, it seems that the holiday-spending-induced penny-pinching may continue as February may be accompanied by a fuel price increase.
According to the latest information sourced from the most recent daily snapshot from the Central Energy Fund (CEF) suggest that 95 unleaded is expected to increase by 32 cents a litre, which would see the price soar to R21,15 inland and R21,10 at the coast. 93 unleaded is expected to increase by 2 cents a litre which will increase to R21,80. Volatile oil prices have contributed to this sudden shift and information suggests that if price fluctuations for the oil price continues to the end of the month, this increase could be as high as 70 cents per litre for unleaded petrol.
Last year July saw a record high of R26,09 for 93 unleaded on the coast with inland prices set at R26,79. Although these prices are nowhere near that peak, increasing volatility in the market and risky trends may see prices inch closer and closer to that unwanted reality.
Contrasting the fuel price increase of unleaded petrol, diesel may see a decrease of 6 cents per litre, whole 500ppm may see an increase of 6%. Initially, the expectation was for the fuel price to decrease according to information provided in the CEF’s mid-month data report. It’s likely the continued strain of the conflict in Ukraine paired with China’s re-emergence into the international community following strict lockdown regulations. “China’s shift away from Covid Zero has bolstered expectations that consumption in the largest importer will expand. – Bloomberg
Brent crude has seen a dramatic increase, previously trading at $78 a barrel, and has risen to $87,60 per barrel.
Fuel prices will be adjusted and these increases will become a reality from Wednesday, the 1st of February 2023. Keep in mind, officials have yet to confirm the actual fuel prices, and with the rest of the week ahead, trends may change, or increases may vary.
