Fuel price increase for April may not be as high as expected

South Africans have been dreading the expected fuel price increase in April. However, lower oil prices and a stronger rand means that the previously projected price may not be as high as expected.

Fuel price increase in SA may not be *as* expensive as projected

Economists from the Bureau for Economic Research (BER) revealed the news recently. Brent crude oil’s one-month future closed the week around 4% lower, according to BER’s research note.

The rand’s exchange rate is quite firm in its position. This benefits South Africans as petrol is expected to go up by around R2/litre and diesel around R2.50/litre.

Estimates from mid-March put the petrol price increase at around R2.50/litre. While the expected diesel increase was over R3/litre. Locals called for Government to step in and assist with the steep increases.

This prompted Government to suggest that working from home continues to combat the fuel price increase.

The local economy will still be impacted

The record-high fuel price increases will still negatively affect South Africa’s economy, according to Nedbank economists. They stated that locals will feel the impact of increased energy prices as well as hikes in the price of intermediate and capital goods.

Import prices are also projected to increase faster than exports, reports BusinessTech.

“South Africa will feel the effects of sharply higher energy prices and the general rise in intermediate and capital goods prices due to supply chain bottlenecks. Consequently, import prices are expected to increase at a faster pace than those of exports, resulting in a further deterioration in South Africa’s terms of trade.”

Fuel rationing incoming if Russia-Ukraine war continues – Energy Dept

The ongoing war in Ukraine may force South Africans to start rationing their fuel. This news comes from the South African Department of Mineral Resources and Energy.

The energy department stated that the fuel price increases are being felt across the globe. It explained that developing countries around the world are being hit a bit harder by the growing costs.

The department was briefing Parliament on 15 March about the impact the Russia-Ukraine conflict is having on the rising fuel costs in South Africa. Tseliso Maqubela, an official from the Department of Mineral Resources and Energy addressed the matter. Read the full story here.