Petrol set to top R23/l in May, CEF data shows

Unaudited data from the Central Energy Fund (CEF) indicates there will be big increases in petrol prices in May, pushing the cost of fuel above R23/l for the first time this year.

The Automobile Association (AA) says the expected increases will put further pressure on embattled consumers grappling with food prices, which rose 14% year on year in March, the most in 14 years, based on Stats SA data. Inflation as measured by the consumer price index accelerated to an annual rate of 7% in the month.

The unaudited data does show that diesel and illuminating paraffin prices are likely to drop, though.

ULP95 is expected to climb about 52c/l, and ULP93 by around 56c/l. The wholesale price of diesel is expected to drop by between 31c/l and 57c/l, while the cost of illuminating paraffin is slated to fall about 32c/l. 

“The decrease to diesel and paraffin prices is certainly good news, especially as the country enters colder months. There is no doubt these are difficult times, and petrol price increases will come as bad news for many who will have to dig even deeper in their pockets to keep mobile,” the AA said.

“The surge in international oil prices is the main driver contributing to the under recovery in petrol prices, while the average rand/US dollar exchange rate during April is actually providing some relief, without which the increases could have been higher,” said the AA.

“The silver lining, though, are the expected diesel price reductions. Diesel is a big input cost in sectors such as agriculture, mining and manufacturing and an increase here often contributes to increased prices of basic commodities,” the organisation added.

Officially adjusted fuel prices come into effect on May 3, the first Wednesday of the month. An official announcement is expected from the department of mineral resources & energy in the next few days.

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