South Africans are set to pay more at the pumps from next month, after Mineral and Petroleum Resources Minister Gwede Mantashe’s comments earlier today all but confirmed fuel price increases in April.

Mantashe spoke at the fifth Southern Africa Oil and Gas Conference in Cape Town, where he admitted that countries that rely heavily on imports of refined petroleum products remain vulnerable to global market shocks. This includes South Africa.

“While questions remain about the fuel supply disruptions, the reality is that substantial fuel price increases are increasingly unavoidable,” the minister said.

While the fuel prices are set to change on April Fool’s Day this year, this will be no laughing matter for citizens already feeling the pinch.

Pretoria Rekord reports that motorists are being warned to brace for a painful blow at the pumps, with mid-March fuel data pointing to sharp petrol and diesel hikes while Treasury’s latest budget also confirms higher fuel levies from April 1.

Mid-March data from the Central Energy Fund shows sizeable under-recoveries for both petrol and diesel, with petrol (95) tracking a 427 cents per litre increase and diesel showing hikes of more than R7 per litre if current trends continue to the end of the month.

Here are the expected fuel prices for April:

• Petrol 93: Increase of 387 cents per litre
• Petrol 95: Increase of 427 cents per litre
• Diesel 0.05% (wholesale): Increase of 704 cents per litre
• Diesel 0.005% (wholesale): Increase of 715 cents per litre
• Illuminating paraffin: Increase of 899 cents per litre

Availability

Mantashe addressed concerns of a fuel supply shortage amid conflict in the Middle East and said that to maintain product availability in South Africa, the department is engaging with industry players to explore ‘all possible supply sources’.

“These engagements are aimed at ensuring uninterrupted fuel availability in the domestic market,” he added.

The minister believes that domestic production remains key to a sustainable long-term solution to our challenges. “This can only be achieved through the rigorous exploration and responsible exploitation of our own petroleum resources.” Mantashe has often stated that persistent resistance from environmental lobby groups remains one of the key challenges in developing South Africa’s petroleum sector.

Local production

“It is well established that South Africa is endowed with significant offshore petroleum potential, including major gas discoveries in the Outeniqua Basin. Geological evidence suggests that oil discovered on the Orange Basin may extend southwards into South African waters.”

He referred to the Constitution that states that the government must ‘secure ecologically sustainable development and the use of natural resources while promoting justifiable economic and social development’. “South Africa, and indeed the African continent at large, cannot afford to remain poor while endowed with abundant natural resources. We must harness these resources responsibly to drive inclusive economic growth, create employment opportunities and eradicate poverty.”

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