South Africans Could Face Another Massive Fuel Hike in May

• South Africans may have to brace for another blow at the pumps as prices go up again in May
• Information from the Central Energy Fund says the hike might happen due to petrol and diesel under recovering
• The government fuel levy is set to expire in May, which could add another R3 per litre to the price

SOUTH AFRICA — Just as South Africans were dealing with record fuel hikes on Wednesday, 1 April, new data shows things could get worse next month.

The Central Energy Fund (CEF) says petrol 95 is already under-recovering by R7.88 per litre, and diesel (0.005% sulphur) by R17.57.

Fuel prices set to jump again

According to eNCA, unless the government acts or market conditions change drastically, another big price increase seems likely in May. Petrol 93 and Petrol 95 could go up by around 43 to 47 cents per litre.

The record April price jumps,over R3 per litre for petrol and more than R7 for diesel, were based on fuel cost changes between 27 February and 26 March. The next adjustment on 6 May will use data from 27 March to 30 April.

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Under-recoveries happen when global oil prices and exchange rates push fuel costs up, meaning consumers are paying less than it actually costs to produce fuel.

March’s numbers were hit hard by US attacks on Iran, which disrupted global oil markets and pushed costs even higher.

Government relief may end

In April, a R3-per-litre cut to the fuel levy helped soften the blow. But this relief is set to expire on 6 May, which could add another R3 per litre to prices.

If the current under-recoveries hold and the levy is added back, petrol could rise by over R10 per litre and diesel by over R20 in May.

Finance Minister Enoch Godongwana has not confirmed whether a similar levy reduction will be implemented for May.

Articles on fuel price hike

• TotalEnergies has reportedly increased diesel prices at some of its service stations in South Africa, with pump prices reaching about R27.50 per litre.
• All three of Tshwane Bus Services' depots have officially been affected by the ongoing fuel crisis affecting the country
• Concerns over fuel shortages in parts of the Western Cape prompted Premier Alan Winde to approach the Presidency and Mineral and Petroleum Resources Minister Gwede Mantashe, citing suspected stock hoarding by some suppliers.
• Chief economist, Lisette IJssel de Schepper warned that the April hike could add strain to the average South African household.
• The South African National Taxi Council (SANTACO) KZN increased the taxi fare due to the fuel hike. The organisation said the increase is necessary to cover the rising costs of fuel and other operational expenses that the taxi industry faces.

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Briefly News also reported that residents panicked at the possibility of a fuel shortage ahead of the April petrol hike. Motorists' anxiety rapidly spread, with long queues forming at petrol stations. Some fuel stations ran out of fuel, while some rationed the amount of fuel individual drivers bought. With the Easter weekend fast approaching, fears spread that SA would not have enough fuel for the citizens travelling during the long weekend.

Source: Briefly News