South African motorists warned against massive petrol price in February

South African motorists must brace themselves for a massive petrol price hike this month as per the information released by Central Energy.

While the month of February has two weeks to see the prices fixed, the fund data shows that 95 unleaded petrol could be increased by more than R1.20 per litre this month.

Looking at diesel prices, it may be hiked by 38c as fuel prices are usually adjusted on the first Wednesday of a month.

Additionally, the prices are primarily determined by the price of oil and the rand-dollar exchange rate.

Local media outlets indicate that while Brent crude oil is roughly the same level as a month ago – currently around $85 a barrel – oil prices have been volatile over the past month.

“Prices received support from expectations that the end of Chinese lockdowns will boost demand and Russia’s announcement that it will cut output, but uncertainty about a global recession weighed on sentiment,” posted News24 Business.

“The rand has taken a big hit over recent weeks, falling from around R17/$ to trading at R18 in recent days. Expectations that the US may still hike interest rates by a large margin and concern about the impact of load shedding fuelled a rand sell-off.”

In looking at Gauteng petrol prices, it hiked to R21.68 per litre at the start of February, from R20.14 a year ago.

Furthermore, petrol peaked at R26.74 in July last year and Gauteng diesel increased to around R21.32 a litre coming from R18.04 in February 2022.

Diesel was close to R25.50 in November last year and the report has it that minister of Finance Enoch Godongwana may likely adjust the general fuel levy.

Godongwana may also look at adjusting the Road Accident Fund levy in his upcoming Budget Speech in Parliament next week, which could take effect in April 2023.