April fuel price shock: Petrol could jump over R5, diesel close to R10
Fuel prices could surge sharply in April, with petrol expected to climb by over R5 and diesel close to R10 a litre amid rising oil costs and global tensions.
With the announcement of the official fuel price adjustment for April just a day away, current projections are pointing to increases of just over R5 for petrol and closer to R10 for diesel.
"Given the latest publication of Central Energy Fund figures and the under recoveries for petrol and diesel, it would seem as though petrol's going to be well in excess of five R5 a litre increase and diesel can be nearer to R10 a litre increase,” says Economist, John Loos.
Global oil tensions drive sharp fuel price surge
Loos’ comments come amid a global oil crisis driven by the US-Israeli conflict with Iran, which has sent fuel prices climbing.
" This obviously has direct inflationary impacts for the consumer. It goes straight to the pump prices early in April, and this is one of the bigger inflationary increases in petrol that we've had in many years."
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Power and Energy Expert, Vally Padayachee, says there has been some relief in oil prices after President Donald Trump announced a pause in US strikes, but there will not be a quick bounce back in terms of the cost.
" So, if the war ends quickly in the next few days, then we could still contain the price of fuel at the pump station, albeit we will be paying more."
There have also been fears of a shortage that could lead to possible supply disruptions in South Africa.
Fears of shortages dismissed amid surge in demand
However, both the government and the Fuels Industry Association have maintained that supply remains stable in the country.
" The worst-case scenario, and I'm not saying that to create panic, but we could run short of fuel at our pump station. But that's the worst-case scenario. We do have alternative supplies,” says Padayachee.
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In response to questions around possible shortages of diesel supply in the country, the association's CEO, Avhapfani Tshifularo, says this might be a man-made issue.
"I suspect that because people are trying to beat the price increase, that's why we're seeing this artificial demand, because in terms of the numbers, it doesn't seem like there's been any additional volumes that are required for diesel, except that people want more now."
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