South Africa's fuel prices set to rise in September amid ongoing middle east tensions
With rising tensions in the Middle East, South Africa's fuel prices are poised for significant increases in September, as indicated by the latest data from the Central Energy Fund.
As tensions continue to escalate in the Middle East, South Africa's fuel prices are set to surge in September, according to recent data from the Central Energy Fund. Diesel prices are expected to rise by approximately R2.73 for 500ppm and R2.90 for 50ppm, while petrol prices may see under-recoveries of 66 cents for 93 Unleaded and 77 cents for 95 Unleaded.
Paraffin is also anticipated to increase by around R2.14. Since March, the price of 95 Unleaded has climbed from R19.47 to R24.71, peaking at R27.19 in June, while diesel prices have risen from R17.70 to R25.30, peaking at R30.30 in May. Both petrol grades dropped by 52 cents per litre at the start of August, but diesel prices increased by R1.23 to R1.38 per litre.
Despite international oil markets appearing to stabilize with Brent crude oil trading around $90 per barrel in August, prices remain significantly higher than pre-war levels of $70. Ole Hvalbye, a commodities analyst at SEB, predicts that normal flows out of the Strait of Hormuz, which has been largely shut to shipping traffic since February, will not return anytime soon.
However, a gradual decline in international oil prices is expected, with JP Morgan forecasting an average of $86 for Brent in the third quarter, falling to $80 in the fourth quarter and $78 in 2027.
Written by urgent.news from IOL's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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