South African motorists are set to face another significant hike in fuel prices for the fourth consecutive month in February, with local fuel pumps likely to see sharp increases.
The Department of Mineral Resources and Energy (DMRE) will officially adjust fuel prices next week, but Central Energy Fund’s (CEF) daily predictive snapshot already indicates major increases across the board.
As of January 28, the CEF’s figures suggest a minimum R1+ per litre increase for diesel, while petrol prices are expected to rise by approximately 90 cents per litre, which will come as a big blow to already stretched household budgets.
The latest predictions from the CEF point to the following increases for February:
Petrol 93: Increase of 91 cents
Petrol 95: Increase of 84 cents
Diesel 0.05%: Increase of 109 cents
Diesel 0.005%: Increase of 105 cents
Illuminating Paraffin: Increase of 98 cents
Oil prices are currently being influenced by US president Donald Trump’s push for Saudi Arabia and OPEC to reduce crude prices. At the time of publishing, the price of Brent crude oil stands at approximately $77.20 per barrel.
Meanwhile, South Africa’s rand saw a slight uptick on Wednesday, trading at R18.68 to the dollar, up by around 0.1% from its previous close. This movement comes ahead of the US Federal Reserve’s interest rate decision, which is anticipated to maintain rates steady.
Trump has previously expressed his belief that interest rates should be lower, claiming he has a better understanding of monetary policy than those responsible for setting it.
As global oil prices continue to climb, the cost to South Africa’s importers increases, which is then passed on to consumers at the pumps. The rand’s depreciation only accelerates this process, making it harder for the country to absorb the global price fluctuations.
The South African Reserve Bank (SARB) is expected to announce its first interest rate decision for 2025 on Thursday, with many economists predicting a modest 25-basis-point reduction to 7.50%.
This could offer some relief for consumers facing high borrowing costs, but it remains to be seen whether the cuts will have any significant impact on fuel prices.