Increase in Fuel Prices Possible in South Africa, February 2025

In the coming weeks, South Africans will need to brace themselves for another round of price hikes at the pump. The South African Department of Mineral Resources and Energy is expected to announce the official price changes towards the end of January.

The upcoming increase in petrol and diesel prices is expected to add to the financial burden faced by individuals and businesses alike. According to reports, the increase for 95 petrol may be up to 65 cents per litre, with diesel prices expected to rise by 70 to 74 cents per litre.

The price surge is primarily driven by a combination of factors. The weakening South African rand, which makes the import of fuel more expensive on international markets, plays a significant role. Additionally, the under-recovery factor, where the price of petrol is currently lower than the cost of importing it, is likely to lead to higher prices in February.

The Central Energy Fund reported a 27.704 cent under-recovery on the petrol price for January, indicating that the government seeks to adjust to cover these costs.

International oil prices are currently stable but trending sideways, with Brent crude around 66.50 to 69 US dollars per barrel. Prices are supported by limited production increases from OPEC+ and supply disruptions such as halted oil exports from South Sudan and sanctions on Iranian oil. These factors, combined with geopolitical uncertainties, maintain moderate-to-high prices affecting fuel prices in South Africa.

The rising fuel prices are expected to increase the cost of transportation, impacting logistics, public transport fares, and food prices. This has led many South African citizens to express concern about the fuel price increases and call for greater transparency and long-term solutions.

As the situation develops, consumers are advised to stay informed and consider alternative measures to mitigate the impact of rising fuel prices. Carpooling or using public transport could be viable options to reduce fuel consumption and costs.

The final petrol and diesel price adjustments will depend on a variety of factors, including the latest international oil price movements and exchange rate fluctuations. The government's announcement will provide clarity on the exact price increases and allow consumers to plan accordingly.

In conclusion, the upcoming fuel price increases are expected to add to the financial burden faced by households and businesses already grappling with inflation. South Africans are urged to stay informed and consider ways to reduce their fuel consumption to lessen the impact of these price hikes.