Bigger Than Expected Petrol And Diesel Price Increases Lining Up For February

South African motorists will be hit with significant petrol and diesel cost increases when the next fuel price adjustments take effect on February 5.

The latest numbers released by the Central Energy Fund are showing significant under-recoveries for both fuel types, pointing to increases of 88 cents for 95 Unleaded petrol and 95 cents for 93 Unleaded, while diesel is looking set for hikes of between R1.08 50ppm and R1.11 500ppm.

This would see 95 ULP petrol rising to around R21.68 at the coast and R22.47 inland, where 93 ULP should land around the R22.54 mark.

However this appears to be the upside scenario at present. With the most recent daily data having moved further into the red, the aforementioned under-recoveries look set to grow between now and month-end, risking increases of R1 or more for petrol, should current trends persist.

Those trends come in the form of inflated oil prices as well as a weaker rand having worsened the outlook since early January, when a petrol price increase of around 68 cents had been predicted .