Fuel prices in South Africa are expected to skyrocket over the next month, possibly pushing consumer inflation back above the upper limit, as the global demand for oil is expected to reach an all-time high.
On Friday, the International Energy Agency (IEA) revised its forecast for global oil demand upwards for 2023. This is likely to push prices even higher.
The IEA in its August report said demand was “scaling record highs” on the back of a sharp reduction by oil-producing countries such as Saudi Arabia and Russia.
The IEA said the world oil demand hit a record 103 million barrels per day in June, and August could see yet another rise.
Meanwhile, data from Central Energy Fund (CEF) indicate that the 10 days of August showed significant fuel prices increase which is looking likely for September.
It stated that CEF the price of 95 Unleaded petrol could go up to R1.26 per litre at the beginning of September, while diesel might increase in the region of R2.50 per litre.
However, with the current daily numbers around R2 per litre for petrol and R3 for diesel, the month-average could increase well beyond the above-mentioned forecasts.