Russia’s invasion of Ukraine has sent international oil prices skyrocketing, while some economists are predicting that South Africans could be paying up to R40/l for petrol in the not too distant future.
RUSSIA’S invasion of Ukraine has sent international oil prices skyrocketing, while some economists are predicting that South Africans could be paying up to R40/l for petrol in the not too distant future.
Meanwhile, early indications are pointing towards another substantial fuel price increase for April, reports IOL Motoring.
According to early month data released by the Central Energy Fund, the average under-recovery for the current fuel price cycle, so far, is pointing towards an increase in the region of R2.15 for 95 Unleaded petrol and R2.71 for 500ppm diesel.
This data represents an average of the oil price and currency movements that took place between 25 February and 7 March, and the eventual April fuel price will also be determined by what takes place between now and late March.
Of course, a lot can change between now and then.
However, the latest daily data paints an even bleaker picture, showing an under recovery of R3.43 for petrol and R5.01 for diesel.
This means that unless oil prices soften between now and month-end, South Africa’s fuel price hike will be closer to the R3/l mark, while diesel will almost certainly surpass that.
Yet even if oil prices do soften and the current prediction of a R2.15 petrol price hike materialises, South Africans living at the coast will fork out R23.03 for 95 ULP.
March saw a petrol price hike of R1.46 per litre for petrol and up to R1.48 c/l for diesel, and according to the AA these continued increases will have a sharp and immediate effect on the poor, as well as long-term inflation.