The latest data from the Central Energy Fund shows an under-recovery of about 18 cents per litre for petrol while diesel prices are down by around 32 cents per litre. This seesaw in prices affects everyone’s budget, but there’s a bit of relief for diesel users.Although petrol prices are still on track for a hike, it’s important to note they’re not as steep as initially forecasted earlier this month, when prices were expected to surge by R1.
This might also mean a slight easing of inflation pressures, following the February fuel price increases which pushed inflation up to 5.6%, which was higher than anticipated.that fuel prices have been a major contributor to inflation pressure since February. Last month saw a significant increase of 75c/litre, impacting not only fuel costs but also the expenses associated with private vehicle operation.
‘April is currently on course for only a tiny petrol price hike… as the international Brent crude oil price has dropped lower in rands.’ Recent adjustments in the value of the rand have cast a shadow over any potential improvements in petrol prices.