Next week will see  significant increase in petrol prices

According to the most recent Central Energy Fund (CEF) data, motorists may expect a significant increase in gasoline prices next week, owing primarily to a considerably lower rand.

According to the CEF snapshot for 22 February 2023, fuel prices are anticipated to rise by between R1.23 and R1.27 per litre. Diesel prices will also rise, although at a reduced rate of 28 cents per litre.

The Department of Natural Resources and Energy is anticipated to publish the official modifications in the coming days, ahead of their implementation on March 1, 2023.

The following are the anticipated changes:

• Petrol 93: increase of 127 cents a litre;
• Petrol 95: increase of 123 cents a litre;
• Diesel 0.05%: increase 28 cents a litre;
• Diesel 0.005%: increase of 28 cents a litre;
• Illuminating paraffin: increase of 17 cents a litre.

The cost of foreign items depending on the oil price and imported, as well as a weaker rand versus the dollar, are all contributing to the large increase in gas costs. Diesel product prices are actually helping to an over-recovery, but the weaker rand is undoing any gains.

Oil prices globally remain range-bound, hovering between $80 and $85 per barrel.

This year, oil has been tossed around by optimistic expectations about China’s recovery with the conclusion of Covid Zero and persistent fears about a US economic slowdown and the larger prospect of global recession.

On the one hand, markets expect demand to rise dramatically as China restarts production after years of restraint, as well as tighter supply owing to Russian sanctions and aggressive cutting by OPEC+ nations.

On the other hand, central banks have continued to raise interest rates, paving the way for dampened global economic growth and a decline in key economies. While some analysts forecast a jump to $100 per barrel by the middle of the year, markets are now bouncing back and forth as they await additional data.

Nevertheless, the rand has been under pressure for much of the year and has risen past R18 to the dollar.

While the local unit is continuously pushed around by the whims of foreign markets, notably the US, where any sign of pressure throws investors into a risk-off mode, affecting developing countries, including South Africa, it has also suffered from the maladies of the local news cycle.

Markets, in particular, are sceptical of the government’s promises to address the current power issue.

The rand fell after President Cyril Ramaphosa’s State of the Nation Address, as investors were sceptical by his claims to address the country’s myriad woes. And, while it recovered following the 2023 budget, which outlined some of the more solid plans for dealing with issues such as Eskom’s debt, the reality of South Africa’s polycrisis remains too formidable to overcome.

On Friday, the rand was trading at R18.22 per dollar, indicating that it was still navigating rough seas.

There is some good news.

While prices are expected to rise in March 2023, there is some positive news for pricing in April.

The National Treasury has decided to give motorists some respite in 2023 by not raising the General Fuel Tax or the Road Accident Fund charge this year – the second tax year in a row.

The taxes are frequently raised as an easy method to raise more money for the fiscus, and several economists and experts speculated that it will be raised again this year for that purpose.

Nevertheless, in his budget statement, finance minister Enoch Godongwana stated that revenue receipts for the year were sufficient to prevent any significant tax modifications.

The good news is that enterprises in the food production industry are no longer required to pay the RAF component of the diesel price when utilised for electricity generating.

The General Fuel Levy is now set at R3.94 per litre of 95 fuel, while the RAF levy is set at R2.18 per litre of 95 petrol. They add R6.12 on every litre of gasoline and diesel sold in the country.

According to the most recent Central Energy Fund (CEF) data, motorists may expect a significant increase in gasoline prices next week, owing primarily to a considerably lower rand.

According to the CEF snapshot for 22 February 2023, fuel prices are anticipated to rise by between R1.23 and R1.27 per litre. Diesel prices will also rise, although at a reduced rate of 28 cents per litre.

The Department of Natural Resources and Energy is anticipated to publish the official modifications in the coming days, ahead of their implementation on March 1, 2023.

The following are the anticipated changes:

• Petrol 93: increase of 127 cents a litre;
• Petrol 95: increase of 123 cents a litre;
• Diesel 0.05%: increase 28 cents a litre;
• Diesel 0.005%: increase of 28 cents a litre;
• Illuminating paraffin: increase of 17 cents a litre.

The cost of foreign items depending on the oil price and imported, as well as a weaker rand versus the dollar, are all contributing to the large increase in gas costs. Diesel product prices are actually helping to an over-recovery, but the weaker rand is undoing any gains.

Oil prices globally remain range-bound, hovering between $80 and $85 per barrel.

This year, oil has been tossed around by optimistic expectations about China’s recovery with the conclusion of Covid Zero and persistent fears about a US economic slowdown and the larger prospect of global recession.

On the one hand, markets expect demand to rise dramatically as China restarts production after years of restraint, as well as tighter supply owing to Russian sanctions and aggressive cutting by OPEC+ nations.

On the other hand, central banks have continued to raise interest rates, paving the way for dampened global economic growth and a decline in key economies. While some analysts forecast a jump to $100 per barrel by the middle of the year, markets are now bouncing back and forth as they await additional data.

Nevertheless, the rand has been under pressure for much of the year and has risen past R18 to the dollar.

While the local unit is continuously pushed around by the whims of foreign markets, notably the US, where any sign of pressure throws investors into a risk-off mode, affecting developing countries, including South Africa, it has also suffered from the maladies of the local news cycle.

Markets, in particular, are sceptical of the government’s promises to address the current power issue.

The rand fell after President Cyril Ramaphosa’s State of the Nation Address, as investors were sceptical by his claims to address the country’s myriad woes. And, while it recovered following the 2023 budget, which outlined some of the more solid plans for dealing with issues such as Eskom’s debt, the reality of South Africa’s polycrisis remains too formidable to overcome.

On Friday, the rand was trading at R18.22 per dollar, indicating that it was still navigating rough seas.

There is some good news.

While prices are expected to rise in March 2023, there is some positive news for pricing in April.

The National Treasury has decided to give motorists some respite in 2023 by not raising the General Fuel Tax or the Road Accident Fund charge this year – the second tax year in a row.

The taxes are frequently raised as an easy method to raise more money for the fiscus, and several economists and experts speculated that it will be raised again this year for that purpose.

Nevertheless, in his budget statement, finance minister Enoch Godongwana stated that revenue receipts for the year were sufficient to prevent any significant tax modifications.

The good news is that enterprises in the food production industry are no longer required to pay the RAF component of the diesel price when utilised for electricity generating.

The General Fuel Levy is now set at R3.94 per litre of 95 fuel, while the RAF levy is set at R2.18 per litre of 95 petrol. They add R6.12 on every litre of gasoline and diesel sold in the country.

According to the most recent Central Energy Fund (CEF) data, motorists may expect a significant increase in gasoline prices next week, owing primarily to a considerably lower rand.

According to the CEF snapshot for 22 February 2023, fuel prices are anticipated to rise by between R1.23 and R1.27 per litre. Diesel prices will also rise, although at a reduced rate of 28 cents per litre.

The Department of Natural Resources and Energy is anticipated to publish the official modifications in the coming days, ahead of their implementation on March 1, 2023.

The following are the anticipated changes:

• Petrol 93: increase of 127 cents a litre;
• Petrol 95: increase of 123 cents a litre;
• Diesel 0.05%: increase 28 cents a litre;
• Diesel 0.005%: increase of 28 cents a litre;
• Illuminating paraffin: increase of 17 cents a litre.

The cost of foreign items depending on the oil price and imported, as well as a weaker rand versus the dollar, are all contributing to the large increase in gas costs. Diesel product prices are actually helping to an over-recovery, but the weaker rand is undoing any gains.

Oil prices globally remain range-bound, hovering between $80 and $85 per barrel.

This year, oil has been tossed around by optimistic expectations about China’s recovery with the conclusion of Covid Zero and persistent fears about a US economic slowdown and the larger prospect of global recession.

On the one hand, markets expect demand to rise dramatically as China restarts production after years of restraint, as well as tighter supply owing to Russian sanctions and aggressive cutting by OPEC+ nations.

On the other hand, central banks have continued to raise interest rates, paving the way for dampened global economic growth and a decline in key economies. While some analysts forecast a jump to $100 per barrel by the middle of the year, markets are now bouncing back and forth as they await additional data.

Nevertheless, the rand has been under pressure for much of the year and has risen past R18 to the dollar.

While the local unit is continuously pushed around by the whims of foreign markets, notably the US, where any sign of pressure throws investors into a risk-off mode, affecting developing countries, including South Africa, it has also suffered from the maladies of the local news cycle.

Markets, in particular, are sceptical of the government’s promises to address the current power issue.

The rand fell after President Cyril Ramaphosa’s State of the Nation Address, as investors were sceptical by his claims to address the country’s myriad woes. And, while it recovered following the 2023 budget, which outlined some of the more solid plans for dealing with issues such as Eskom’s debt, the reality of South Africa’s polycrisis remains too formidable to overcome.

On Friday, the rand was trading at R18.22 per dollar, indicating that it was still navigating rough seas.

There is some good news

While prices are expected to rise in March 2023, there is some positive news for pricing in April.

The National Treasury has decided to give motorists some respite in 2023 by not raising the General Fuel Tax or the Road Accident Fund charge this year – the second tax year in a row.

The taxes are frequently raised as an easy method to raise more money for the fiscus, and several economists and experts speculated that it will be raised again this year for that purpose.

Nevertheless, in his budget statement, finance minister Enoch Godongwana stated that revenue receipts for the year were sufficient to prevent any significant tax modifications.

The good news is that enterprises in the food production industry are no longer required to pay the RAF component of the diesel price when utilised for electricity generating.

The General Fuel Levy is now set at R3.94 per litre of 95 fuel, while the RAF levy is set at R2.18 per litre of 95 petrol. They add R6.12 on every litre of gasoline and diesel sold in the country.