Painful fuel price hike looms

Petrol prices could be hiked at the end of March by at least 50c/litre. The country's daily unleaded petrol price has averaged an under-recovery of 24.3c/litre so far this month, according to data from the Central Energy Fund. "The under-recovery is as a result of higher international oil prices during the period," said Isaac Matshego, economist at Nedbank.

South African petrol pump prices are fixed once a month. An under-recovery occurs when consumers are paying less for petrol than the actual price, which takes into account the movements in the rand/dollar exchange rate and international oil prices.

Another factor affecting prices is fuel levies, amounting to around 25c/litre, which were announced by Treasury earlier this year. The levy comes into effect in April.

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