Mid-month data from the Central Energy Fund (CEF) indicates a slight increase in both petrol and diesel prices in South Africa.
The most recent CEF data, covering the second week of February, shows both petrol and diesel prices experiencing under-recoveries.
This follows February’s fuel price hike, which saw an increase of 82 cents per litre for both grades of unleaded petrol and between R1.01 and R1.05 per litre for diesel.
Currently, motorists are paying R22.41 per litre for 95 Unleaded petrol and R22.16 for Unleaded 93.
Petrol is showing an under-recovery of between 13 and 26 cents per litre, while diesel is showing a smaller under-recovery, ranging from 0 to 8 cents per litre.
Predicted Changes for March Fuel Prices:
–Petrol 93: Increase of 26 cents per litre
–Petrol 95: Increase of 13 cents per litre
–Diesel 0.05% (wholesale): Increase of 8 cents per litre
–Diesel 0.005% (wholesale): No change
–Illuminating paraffin: Increase of 20 cents per litre
Meanwhile, South Africa’s rand remained relatively unchanged on Monday as investors await finance minister Enoch Godongwana’s budget speech later this week, which will provide key insights into the country’s economic outlook. The rand was trading at R18.35 to the dollar.
Analysts are focused on the budget presentation to Parliament on Wednesday, where the government will outline its spending priorities, revenue measures, and updated economic forecasts for the year.
According to a Reuters poll, analysts expect the country’s budget deficit forecasts to widen beyond the estimates made in October for the next three years.
This comes after a turbulent period in which markets digested a series of executive orders by Donald Trump, as well as the growing concerns about trade tensions between the U.S. and South Africa, and Trump’s broader tariff policies.
The recent rally in oil prices during January has given way to a sell-off in February, as the market begins to factor in the risks of a trade war that could dampen economic growth and oil demand in major global economies.
Concerns over the impact of the new US administration’s tariffs, as president Trump seeks to reduce America’s trade deficit, have spooked the oil market in February, exacerbating fears that trade frictions could lead to an economic slowdown.
A crude oil price decline, which began last week, continued today, with benchmark prices dipping further amid growing speculation that the end of the Russia-Ukraine war could be imminent.
Brent crude was trading at $74.77 per barrel.
“Markets are down on the prospect of a Russia-Ukraine ceasefire and potential sanction relief on Moscow,” said NS Trading president Hirouyki Kikugawa in an interview with Reuters.
“Concerns over an economic slowdown from tariff wars, driven by Trump’s actions, are also weighing on prices,” Kikugawa added, noting that prices could slip further below $70 per barrel, which would negatively impact drilling operations in the United States.
