Brace for possible diesel price hikes

SOUTH Africa is set for a fuel price shock at the beginning of April, as soaring international oil prices and a weaker rand could result in the largest monthly increases in history.

- JASON WOOSEY

The extent of the increases remains difficult to predict at this early stage of the month, but the latest data from the Central Energy Fund is painting a grim picture.

The “best case scenario” at present is a petrol price hike of R2.41 for petrol and diesel increases of up to R4.50 for SOppm diesel.

This prediction is, however, based on the month average, which has yet to fully factor in the sharp oil price surges that took place during the latter half of the past week. Daily data released on Friday showed a diesel under-recovery of R7 per litre, with petrol around R3.78 in the red.