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South Africans have been enjoying relatively stable petrol prices since August, but good things don’t last forever, so here we go again. Mid-month data published by the Central Energy Fund (CEF) shows that petrol and diesel prices in South Africa could be going up next month.
According to AA, increases in fuel are most likely to happen in the new month. Local fuel price fluctuations are mostly impacted by two main factors, the international price of petroleum products, driven mainly by oil prices and the rand/dollar exchange rate used in the purchase of these products. The knock-on effect on local fuel prices is made worse by persistent rand weakness as the local unit remains under pressure from a stronger dollar and a host of local issues, including a protracted strike at Transnet and continued load shedding.
According to the CEF, fuel prices in November are expected to increase as follows:
- Petrol 93 – Increase of 48 cents per litre
- Petrol 95 – Increase of 38 cents per litre
- Diesel 0.05% – Increase of R1.54 cents per litre
- Diesel 0.005% – Increase of R1.57 cents per litre
- Illuminating paraffin – Increase of 57 cents per litre
The association said because diesel was a major input cost in many sectors, an increase to the price will ultimately hurt consumers as manufacturers pass the increases down the line. Petrol figures have dropped by more than R2 a litre since July, while diesel has been on the rise continuously in recent times due to increasing global demand and lack of supply.
The potential increase in prices follows the recent news that South Africa may soon be facing fuel shortages. The Department of Energy will make November’s prices official before the first Wednesday of the month (2nd of November), once it has considered all factors. CEF’s stats are not always accurate but they are usually within reason, the association also mentioned “While these figures may change, we don’t expect a reversal. Prices are likely to go up in November. It is the quantum of those increases that is in question.”
Keyword: Fuel prices most likely to increase once again in latest November forecast