Cape Town – South African motorists will see smaller fuel price cuts in February than initially expected, after rising global oil prices eroded earlier gains.
While the rand has strengthened to below R16 to the dollar, this has not been enough to offset a sharp increase in oil prices driven by fears of supply disruptions linked to potential US military action against Iran.
The Central Energy Fund now forecasts modest reductions: petrol down 64–66 cents per litre and diesel down 53–60 cents, far less than the over R1 to R2 per litre cuts predicted at the start of January.
Brent crude has climbed 13.5% since early January, with markets worried about possible disruptions through the Strait of Hormuz, a key global oil shipping route.
Despite support for the rand from higher gold and precious metals prices, surging oil costs have dominated, reducing the relief expected at the pumps.
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Compiled by Betha Madhomu
