Hello R25/litre? Another petrol price increase is on the horizon for South African motorists in May following preliminary data from the Central Energy Fund which illustrates a fourth consecutive month of increases. 
Looking for your next new or used car? Find it here with CARmag!
Mid-month data from the Central Energy Fund (CEF) indicates that fuel prices in South Africa will likely see a mixed outcome for May. Petrol prices are currently anticipated to rise by around 30 cents per litre, marking the fourth consecutive monthly increase. Conversely, diesel prices are expected to decrease, with an over-recovery of approximately 28 cents per litre.
Fuel prices in South Africa are primarily influenced by the rand/dollar exchange rate and international oil prices. Adjustments to fuel prices occur on the first Wednesday of each month based on these factors. Should this mid-month data prove to be accurate, South African motorists can expect to pay more than R25/litre across the board for 93 and 95 octane. Diesel on the other hand, would cost just over R22/litre.
Related: April Fuel Price Increase – Coastal and Inland Prices
Oil prices have been steadily increasing in 2024, rising by approximately 17% since the beginning of the year. This surge is largely attributed to conflict in the Middle East, coupled with efforts by OPEC+ nations to restrict oil supply. Despite some expectations of further price increases to reach $100 per barrel, oil prices have remained relatively resilient, hovering below the $90 mark. The rand has exhibited volatility in recent weeks, fluctuating between R19.25 and R18.46 against the dollar.
Related: Fuel Levies Will Stay as is For Now – Finance Minister
Global sentiment regarding interest rates has also influenced the rand’s performance, with central banks in major economies postponing anticipated rate cuts. This delay has negatively impacted the rand, with expectations for interest rate cuts in South Africa also being pushed back. Higher levels of inflation, exacerbated by oil prices, have further complicated the possibility of rate cuts.
