Fuel price: Another hike forecasted for September

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The Central Energy Fund (CEF) has released its most recent fuel price forecast report. Here’s what South Africans can expect for the month of September.

The Citizen reports, while the petrol price increases by 2-7 cents this month, the diesel price will decrease by 12 cents per litre, while the paraffin price will decrease by 7 cents per litre.

  • In August, petrol 95 cost R18.30 per litre; expect to pay R18.27 per litre in August.
  • A litre of petrol 93 cost R18.11 in August, and would cost R18.13 in September
  • While 0.05% diesel cost R15.64 in August, it is expected to drop to R15.52 in September
  • 0.005 diesel cost R15.64 in August and is expected to cost R15.54 next month.
  • Illuminating paraffin cost R9.60 in August; expect to pay R9.63 per litre in August.

Fuel prices took a knock thanks to the weakening rand and changes in international product prices, and the increase in diesel prices is due to refinement processes and product prices, as well as the rand.

A breakdown of fuel price forecast can be perused here.

How the fuel price is calculated

The fuel prices calculation depends on a number of factors, such as international oil prices, currency exchange rates and fuel taxes.

However, this is subject to change as fuel prices are only calculated by the Department of Mineral Resources and Energy on the first Wednesday of every month. The official changes will be gazetted during the first week in September.

The rand was on a rollercoaster these past few weeks, due to the protests and looting back in July. It has continued to weaken, thanks to volatile international markets.

At the time of publishing, the Rand was listed R14.74 to the dollar, while Brent crude oil was trading at $69.68.

Disclaimer: While the data from the CEF serves as an accurate forecast, the Department of Energy makes adjustments based on a review, and the forecast can change significantly before month-end.

The Citizen/Cheryl Kahla