Fuel price hike of R1 a litre may be on the way
Under-recovery for unleaded 95 petrol was R1.11 in the first 10 days of September, the CEF says, but analysts say a stronger rand may be on the way
The Central Energy Fund (CEF) said on Tuesday that a weaker rand and a higher international oil price led to more than a R1 under recovery for all grades of fuel in the first 10 days of September, putting motorists in line for yet another hefty fuel price increase. Unleaded 95 petrol saw a R1.11 under recovery during the period, 65c of this due to a weaker rand, and 45c due to a rising oil price. Diesel saw the most under recovery, at R1.37, followed by illuminating paraffin’s R1.36. A rising fuel price has become a key political issue recently after a number of hefty increases, with energy minister Jeff Radebe intervening in August to cap September’s increase at 5c, as opposed to an increase of between 25c and 28c. The move is expected to cost the government about R500m, and has led to concerns of populist pandering, despite assurances from Radebe it would not be repeated. The rand has slipped about 2.63% against the dollar so far in September, under significant strain from emergin...
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