Reminder: Steep fuel price hike for consumers in March
The latest data suggests that South African motorists can expect fuel increases of more than R1 per litre for both petrol and diesel.
Brace yourself! South Africans can expect a MASSIVE increase in fuel prices this week.
REMINDER: MASSIVE FUEL PRICE INCREASE EXPECTED THIS WEEK
The Central Energy Fund (CEF) indicated that the increase to 95ULP is noted at R1.20/litre, while the increase to 93ULP is forecast to be R1.15/l. Diesel is showing an increase of about R1.18/l, while illuminating paraffin is set to increase by 63c/l. If realised the increases will result in 95ULP inland costing R24.44/l, and 93ULP inland will be R24.10/l.
“The main driver behind the increases is higher international product prices in addition to the higher average rand/US dollar exchange rate. While the weaker rand is contributing a small margin to the under-recovery and increase to prices expected next month, the overall picture looks bleak and consumers will feel the pinch,”said the AA.
THE OFFICIAL ADJUSTMENT COMES INTO EFFECT ON 6 MARCH
The official adjustment of the fuel prices comes into effect on 6 March.
Senior trader Dennis Kissler of BOK Financial told Reuters that tighter oil supplies would be a reality as we head deeper into 2024.
“OPEC is looking for mid-$80s, maybe around $85 a barrel on Brent. If we stay below that, they will curtail production all the way to the year end,” Kissler said.
Shipping attacks in the Red Sea remain a concern and Yemen’s Houthi has vowed to continue these until Israel’s aggression against Gaza ends.
HOW CAN YOU SAVE FUEL?
MasterDrive CEO Eugene Herbert said basic driving adjustments could help with fuel and diesel consumption:
- Anticipate changes to traffic conditions and minimise unnecessary braking and acceleration.
- Reducing speed by 20km/h can reduce fuel consumption by 20%.
- Plan your route and use traffic apps and alerts to avoid traffic jams and congestion.
- Keep your RPMs around 3 000 as it can also reduce your consumption by 20%.
- Regular maintenance improves fuel efficiency.
- Minimum use of the aircon.