Cape Town – South African motorists are likely to see only minimal relief at the pumps in August, with petrol price cuts shrinking to just a few cents, while diesel users face steep increases of more than R1 per litre, according to the latest Central Energy Fund (CEF) fuel price outlook.
The data shows that petrol’s earlier over-recovery has fallen sharply, leaving expected reductions of 19 cents per litre for 93 octane and 14 cents per litre for 95 octane.
Diesel, however, is forecast to increase by R1.60 per litre for 0.05% diesel and R1.42 per litre for 0.005% diesel, while illuminating paraffin is expected to rise by R1.27 per litre.
The report warns that the fuel price outlook has shifted from anticipated relief to “renewed pain”, noting that the reversal “underscores the fragility of South Africa’s economic outlook” despite the South African Reserve Bank leaving the repo rate unchanged at 7%.
Higher diesel prices are expected to increase transport, logistics and food costs, placing additional pressure on households and businesses already grappling with a difficult economic climate.
The fuel price outlook follows continued instability in global energy markets linked to tensions in the Middle East.
Meanwhile, low-cost airline FlySafair says it will remove the jet fuel surcharge added to ticket prices in March “as soon as the market allows,” although it has cautioned that there will be a “new normal” for fuel costs.
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Compiled by Betha Madhomu
