Major fuel price hike set for Wednesday petrol could top R30 in Gauteng

South African motorists face another substantial fuel price rise from Wednesday, October 7, with month-end Central Energy Fund (CEF) data pointing to increases of more than R3 a litre for major petrol grades and steep hikes for diesel.

How much more you could pay

CEF projections point to an increase of around R3.08 a litre for 93 Unleaded and R3.29 for 95 Unleaded. If implemented in full and without government intervention, 95 Unleaded could cost about R29.23 a litre at the coast and R30.10 in Gauteng from Wednesday, October 7. 93 Unleaded could rise to R29.94.

Diesel to climb even higher

Diesel is projected to increase by between R2.80 for 500ppm and R3.15 for 50ppm. After retail margins are included, 50ppm diesel could exceed R34 a litre at the coast and R35 inland.

What this means for household fuel bills

The latest rise follows a sharp escalation earlier in the year and will add further pressure to household budgets because fuel is an immediate, unavoidable expense.

Using CEF’s projected October price as a benchmark, a driver covering 1,500km a month in a small car that consumes 5.5 litres per 100km would face a monthly fuel bill of roughly R2,470, compared with about R1,666 in March. For a vehicle consuming 8 litres per 100km, the projected October cost for the same distance would be about R3,593. The cost per kilometre for the small car would move from roughly R1.11 in March to around R1.65 at the projected October price.

Policy options appear limited

Temporary tax relief seems unlikely in the near term. In April the government reduced the General Fuel Levy by at least R3 a litre for two months, but Mineral and Petroleum Resources Minister Gwede Mantashe said last month there were no immediate plans for similar relief.

Why prices are rising

The surge in domestic pump prices has been driven largely by elevated international oil prices. The source cites Middle East tensions and attendant fears of disruption to crude supplies and shipping during September as key upward pressures on the market. The Strait of Hormuz is highlighted as a particular concern for global energy markets.

Unless international conditions ease, motorists will enter October facing fuel prices that add further strain to household budgets.