By Rorisang Modiba
- South Africa’s Central Energy Fund says fuel prices may increase in May and diesel could reach a record high price.
- Government officials are discussing more help for South Africans as expensive global oil and a weak rand push prices up.
South Africans could soon pay the highest prices on record for diesel.
The government is looking at more ways to bring relief to people as fuel prices stay high.
Deputy director general Tseliso Maqubela from the Department of Mineral and Petroleum Resources said talks about more help are still taking place. He said the government could make an announcement soon.
Data from the Central Energy Fund shows fuel prices will likely go up again in May.
Right now, petrol is under-recovering by between R2.62 and R2.99 per litre. Diesel is much worse at about R9 per litre. This means the diesel price could reach record highs.
Maqubela said South Africa’s fuel prices are tied to global markets. The country brings in most of its fuel from other countries.
Prices change based on international costs and the rand-dollar exchange rate. Other costs like transport, taxes and the money that retailers make also push the final price up.
South Africa uses between 65 million and 67 million litres of fuel every day. Between 60% and 70% of this fuel comes from countries in the Middle East and India.
Officials say the supply of fuel is stable. But global oil prices are going up and the rand is weak, which makes fuel more expensive.
The National Treasury recently cut some fuel taxes to ease the pressure on people. Officials say more help could follow.
For now, they say it is too early to tell exactly how much fuel prices will go up in May.
Pictured above: A fuel truck.
Image source: File
