Cape Town — Motorists can expect to dig deep into their pockets as fuel prices across all fuel grades are expected to increase in February, marking a second consecutive month of increases to start 2025.
2024 was a positive year for fuel prices in South Africa as there were many months of fuel price deductions in the latter half of 2024. The latest data from the Central Energy Fund (CEF) suggests that petrol and diesel prices will increase exponentially for February.
According to BusinessTech, 93 unleaded petrol will increase by 90 cents per litre, 95 unleaded petrol will increase by 84 cents per litre. Diesel prices are expected to increase more as Diesel 0.05% will increase by R1.07 per litre and Diesel 0.005% will increase r1.03 per litre. Illuminating paraffin will also increase by 98 cents per litre.
Key factors that led to an under-recovery in fuel prices include the weakening rand and international oil prices. The rand is trading much weaker against the dollar relative to the previous month, sticking between R18.50/$ – R19.00/$. This is a significant increase from the R17.40/$ in December.
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The current international oil prices have also led to the under-recovery. Oil is currently trading at $76 a barrel. According to Samer Hasn, Senior Market Analyst at XS.com, the drop in oil comes from a set of negative factors that are likely to exacerbate concerns about either oversupply or falling demand for crude.
Notably, Trump’s tariff war is having a significant impact on pricing.
Despite pulling back to lower levels, crude prices in January are still higher than they were in December, hence the under-recovery in local fuel pricing.
The Department of Petroleum and Mineral Resources will announce the official price changes in the coming days, with new pricing set to kick in on Wednesday, 5 February.
According to SABC News, Dr Dale McKinley said the reason for the increased prcies and global economic strain is due to the inauguration of US President Donald Trump.
McKinley says the rand has devalued while the dollar has gained strength. He further explains that Trump’s utterances to protect the United States economy have made the tax sector go crazy on the stock market.
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Compiled by Matthew Petersen
