Despite South Africa’s petrol and diesel prices normally being closely aligned, this trend has changed in the last few months, with diesel prices now expected to rise despite projected drops in the cost of petrol.
The latest data from the Central Energy Fund shows that petrol prices are on track to come down by as much as R1.20 per litre in October – however, diesel prices are looking like they will increase by between 25 cents and 31 cents per litre.
Should the crisis in the Eurozone continue and supply not increase from oil-producing countries, South Africa could see global demand for diesel drive prices up “for a while”, he said.“A lot of market players have bought diesel in the short term due to the lack of supply, as well as the current energy crisis in the Eurozone as the winter approaches,” he said.
Botha said that to curb high diesel prices, either a major change in the Russian conflict is needed or an increase in supply from other countries. The finance expert said that recent developments in the oil market would also have a direct impact on the disparity, which will likely play out in fuel adjustments next month. Oil prices have come down from their highs of $140 per barrel earlier in the year, now hovering below the $100 per barrel mark.