Significant petrol and diesel price increases are on the cards for April.
Image: Tumi Pakkies / Independent Media
Soaring international oil prices in the wake of the US and Israeli war on Iran mean South Africans are likely to be hit with record fuel price increases at the beginning of April.
The latest daily update from the Central Energy Fund (CEF) is showing significant under-recoveries for both fuel types, with 95 Unleaded petrol projected to increase by R3.52 per litre and 50ppm diesel by around R6.02. ,
These predictions are based on the month-average, which is a "moving target" at present given the volatility in international oil markets. Should oil prices remain at elevated levels, South Africans could be looking at even greater increases for April.
95 Unleaded petrol currently costs R19.47 at the coast and R20.30 in Gauteng, where 93 Unleaded retails at R20.19. The wholesale price of diesel is pegged at R17.84 at the coast and R19.17 inland.
On Wednesday, March 11, Brent Crude oil was trading at $90 per barrel, and although this is lower than the previous week's peak of $115, it is still 40% higher than its February average of $64, which determined the current fuel price structure.
Oil prices have softened this week, on potential indications from Donald Trump that the war on Iran may be over soon, and news that the International Energy Agency is considering its largest-ever oil reserve release, in order to ease the upward pressure on the oil market.
Much of the heightened price pressure stems from concerns around potential disruption of the Strait of Hormuz, through which about 20% of the world's oil passes.
A weaker rand is also taking its toll, with the local currency having depreciated from its February average of $16.31 to the US dollar. On Wednesday, it was trading at R16.38 to the greenback, after hitting a low of R16.79 on Thursday.
The final blow will be dealt by the increase in fuel taxes that was announced by Finance Minister Enoch Godongwana during his 2026 Budget Speech. From April 1, South Africans will be paying an additional 21 cents per litre in fuel taxes, following increases to the General Fuel Levy (9 cents), Carbon Levy (5 cents) and Road Accident Fund levy (7 cents).
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Following the tax adjustments, drivers will be contributing a total of R4.10 per litre to the GFL and R2.25 to the embattled RAF.
Keep in mind that the abovementioned fuel price increases are based on early-month data, and much could still transpire before the end of March, when April’s official fuel price adjustments will be calculated.
IOL Motoring