SOUTH African motorists have received good news regarding fuel prices in the past couple of months, but it seems this might be coming to an end.
Motorists have been warned to brace themselves for more expensive fuel in November as mid-month data from the Central Energy Fund (CEF) shows increases to all fuels.
The Automobile Association (AA) says the main contributor is higher-on-average international oil prices and to a lesser extent, the weaker Rand.
“The current data shows that petrol is expected to increase between 41C/L and 51C/L, but the real concern now is the likely increases to diesel prices. The data is showing that diesel will climb by around R1,60/L – a substantial increase to the price. The impact of such an increase on ordinary citizens will be significant.”
According to the association, diesel is a major input cost in many sectors, and an increase to its price will ultimately hurt consumers as manufacturers pass the increases down the line.
It says this is preliminary data and may change before the end of the month.
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“While these figures may change, we don’t expect a reversal. Prices are still likely to go up in November. For now, it’s just the quantum of those increases that is at question.”
