Johannesburg – South African motorists will face a smaller-than-expected fuel price increase in May, according to the latest data from the Central Energy Fund (CEF).
The CEF’s mid-April report shows that under-recoveries for both petrol and diesel have dropped sharply, reducing the scale of the anticipated hikes. Petrol, which was initially projected to rise by up to R4.69 per litre, is now expected to increase by between R2.29 and R2.63 per litre.
Diesel, once forecast to surge by a record R17.57 per litre, is now set for an increase of around R8.05 per litre.
Despite the improvement, the hikes remain significant. The CEF attributed 95% of the under-recovery to global oil prices, which continue to be affected by tensions in the Middle East.
Over the weekend, the United States seized an Iranian cargo vessel near the Strait of Hormuz, raising fears of renewed conflict. Iran has rejected further talks, while US President Donald Trump threatened to target Iranian infrastructure.
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Compiled by Betha Madhomu
