Fuel prices in South Africa will rise sharply from February 5 due to soaring global oil prices and a weakening rand, adding further pressure on the economy and living costs.

South African motorists are in for a rough start to February as fuel prices are set to increase sharply from Wednesday, February 5, bringing yet another financial burden for consumers already grappling with the rising cost of living.

The latest data from the Central Energy Fund (CEF) suggests that both petrol and diesel prices will see substantial hikes, driven by a combination of global oil market volatility and the continued weakening of the South African rand.

According to the projections, 95 Unleaded petrol is expected to rise by around 83 cents per litre, while 93 Unleaded may increase by as much as 90 cents per litre.

Diesel, which is crucial for commercial transport and industry, will see even sharper hikes, with 50ppm likely to increase by R1.01 per litre and 500ppm by R1.06 per litre.

These adjustments will push the price of 95 Unleaded petrol to approximately R21.63 per litre at coastal regions and R22.46 in Gauteng, while 93 Unleaded should reach around R22.24.

Meanwhile, the wholesale price of 50ppm diesel will likely hit R18.68 per litre at the coast and R19.44 inland, although the final retail price will be higher.

This marks the fourth consecutive month of fuel price increases, following smaller hikes of between 12 and 19 cents in January, 17 cents in December, and 25 cents in November.

The trend is causing concern among both consumers and economists, as rising fuel costs directly impact transportation, food prices, and overall inflation, adding pressure to an already fragile economy.

While these numbers are based on CEF data reflecting January’s price under-recoveries, the final adjustments will be officially announced by the Department of Mineral Resources and Energy (DMRE), which will also take into account additional factors such as the slate balance.

There is a possibility that the final increase may be even higher than these initial estimates.

The primary reason behind this fuel price surge is the sharp rise in international oil prices. During the previous pricing period, the average price of Brent Crude was around $72 per barrel, but by mid-January, it had surged to $82 before settling at around $76.

The increase has been largely attributed to geopolitical tensions and global economic instability.

Analysts warn that oil prices may remain volatile due to uncertain market conditions, with factors such as the US government’s policies on trade and sanctions continuing to exert pressure.

Compounding the issue is the continued weakening of the South African rand against the US dollar, which has contributed approximately 36 cents per litre to the overall under-recovery of fuel prices.

The rand has been under particular strain recently, with financial markets reacting negatively to concerns over South Africa’s economic policies and international diplomatic tensions.

The latest blow came after former US President Donald Trump made remarks about South Africa’s land expropriation bill, further weakening investor confidence and pushing the currency down against the dollar.

A weaker rand makes fuel imports more expensive, leading to higher prices at the pump.

For South African consumers, this latest increase adds further strain on already stretched household budgets. Rising fuel costs have a ripple effect across the economy, with higher transportation costs ultimately leading to increased prices for goods and services.

Logistics companies, food producers, and retailers are all expected to pass these additional costs onto consumers, worsening inflationary pressures.

For businesses that rely on fuel for daily operations, such as trucking companies and small delivery services, these price hikes could mean significant financial strain.

Motorists hoping for relief in the coming months may be disappointed. Given the current trajectory of international oil prices and the persistent weakness of the rand, there are no signs of an imminent fuel price decrease.

If global markets remain unstable and the local currency continues to struggle, fuel prices could continue to rise well into March and beyond.

South Africans are urged to plan ahead and budget for these increases, as fuel remains one of the most significant expenses for households and businesses alike.

While the final official adjustments have yet to be confirmed, the likelihood of a substantial hike is almost certain.

Whether you’re a daily commuter, a business owner, or simply someone who relies on fuel for transportation, the coming months could prove increasingly costly.

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