“It’s actually very intricate… It’s never a case about one being essentially cheaper than the other,” said Kumbi Mtshakazi, shedding light on the complexities of fuel pricing as South African motorists prepare for another significant increase in fuel costs.
In May, petrol prices for both Petrol 93 and Petrol 95 are projected to rise by approximately 43 to 47 cents per litre. Diesel prices may see an even steeper increase, with under-recoveries potentially exceeding R13 per litre.
This anticipated rise comes in the wake of a recent fuel shipment scandal in Kenya, where the fuel allegedly failed to meet local standards. Peter Wakaba, the Kenya Energy Minister, noted, “The fuel allegedly failed to meet local standards,” highlighting the serious implications of the situation.
Reports indicate that the fuel in question had a lower octane rating of 91 instead of the required 93, along with elevated levels of sulphur, manganese, and other heavy metals. Furthermore, it was priced about $250 per metric tonne above prevailing market levels, raising concerns about the integrity of fuel supplies.
The scandal has already led to the resignation of several senior officials in Kenya’s petroleum sector, with Wakaba stating, “This could have pushed fuel prices up by about 5%.” He also remarked on the broader implications, saying, “There is a huge trust deficit” in the industry.
In response to rising costs, the South African government had previously reduced the fuel levy in April to alleviate some of the financial burden on consumers. However, it remains unclear whether a similar levy reduction will be implemented for May.
The continued conflict in the Middle East is pushing global oil prices higher, further complicating the situation for consumers in South Africa and beyond. Details remain unconfirmed regarding any additional measures that may be taken to address the rising fuel prices.
