File: A fuel pump. AFP/Daniel Leal
JOHANNESBURG - South African motorists are likely to face another significant fuel price increase in May.
Early projections from the Central Energy Fund indicate that the increase in diesel may even surpass the hikes seen in April.
Petrol 93 and Petrol 95 could go up by around 43 to 47 cents per litre. Owners of diesel vehicles are not so lucky.
Diesel under-recoveries are far higher than petrol, translating to an increase that potentially exceeds R13 per litre. The main factors behind these increases remain unchanged.
The continued conflict in the Middle East continues to push global oil prices higher, while a weaker rand amplifies the impact.
In April, the government reduced the fuel levy to ease the impact on consumers. This will cost the Treasury around R6 billion.
It remains unclear whether a similar levy reduction will be implemented for May.