Cash-strapped consumers may get some slight relief at the petrol pumps during the first week of May, but truckers and other diesel users could still face a price hike, according to the latest data released on Friday by the Central Energy Fund.
It reflects that there has been an over-recovery for the petrol price but a larger under-recovery for diesel.
Analysts have forecast that the price of petrol could drop by as much as 20 to 30 cents a litre, provided that there are no fresh international market shocks before the end of the month. However, the relief may be short-lived when the government’s fuel tax holiday falls away at the end of May as this could lead to a R1.50 price increase in June.
The latest CEF data shows under current economic conditions that 95 octane petrol could be lowered by around 34 cents a litre, while the price of 93 octane may drop by 32 cents. The diesel price will increase by between 75 cents and 81 cents, and illuminating paraffin by 68 cents a litre, according to the latest data.
Petrol and diesel prices have increased by more than 30% over the past year, mainly due to spiralling global oil prices, exacerbated by Russia’s war on Ukraine.
Trade union United Association of South Africa (Uasa) spokesperson, Abigail Moyo, said that workers were struggling with the rising cost of living caused by the knock-on effect of soaring fuel prices. She was reacting to the latest CPI data released on Wednesday.
“The increased annual consumer price inflation (CPI) from 5.7% in February to 5.9% in March 2022, gives cause for concern about the cost of living workers are subjected to.
“The Consumer Price Index increased by 1.0% month-on-month in March 2022. The main contributors to the 5.9% inflation rate were food and non-alcoholic beverages, housing and utilities, transport, and miscellaneous goods and services,” she said.
Food and non-alcoholic beverages increased by 6.2% year-on-year and contributed 1.1 percentage points to the total CPI annual rate of 5.9%.
“With food and other essential needs being the primary drivers of increased CPI, the Russia-Ukraine war continues to cause a considerable knock-on effect on the price of fuel and basic needs goods,” Moyo said.
“Economists cautioned about an expected CPI peak by June, which means the worst is still to come for cash-strapped workers struggling to make ends meet with the little they have.
“Uasa encourages its members and South African consumers to carefully think through household and other spending plans before opening their wallets,” she added.
