South Africans are likely to face further increases in fuel prices in October, as reported by the Automobile Association (AA) based on unaudited data from the Central Energy Fund (CEF). The current data suggests a potential rise of approximately R1.20 per litre for petrol and an increase of up to R2 per litre for wholesale diesel prices. Additionally, illuminating paraffin is expected to see another price hike of R1.84 per litre.
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The AA expresses concern that if these substantial increases occur, they will drive fuel prices to levels not seen since July of the previous year, placing additional strain on the financial well-being of South Africans. The rise in fuel costs is likely to result in higher prices for consumer goods, further burdening those already facing financial difficulties.
According to the CEF's data, the primary factors driving these potential increases are the significant uptick in international oil prices, which have surged since August. This surge is primarily due to reduced oil production by major oil-producing nations. The data from CEF indicates that for petrol, as much as 80% of the increase can be attributed to rising oil prices, while these are responsible for up to 86% of the expected diesel price hike. Although the weaker Rand/US Dollar exchange rate contributes to the overall increases, its impact is relatively minimal compared to the influence of rising oil prices.
