South Africans should brace for more fuel price pain in October, says AA

Unaudited data from the Central Energy Fund (CEF) indicates an increase in the petrol price of about R1.20/l and an increase in the wholesale price of diesel by R2/l in October, the Automobile Association (AA) said on Monday. 

Illuminating paraffin is also set for another increase, with the data showing an under recovery of R1.84/l. 

“Should these increases materialise, they will push fuel prices to levels last seen in July last year, stretching the personal finances of South Africans even further.  

“Higher fuel prices will invariably lead to higher prices at the till, which will be a blow to many already experiencing financial distress,” the AA said. 

Fuel prices are officially calculated and adjusted on the first Wednesday of every month by the department of mineral resources and energy. 

According to the CEF’s data, the main driver of the potential increases are higher international oil prices which have climbed substantially since August, mainly on the back of reduced output by major oil producing nations.  

The AA said the poorer rand/US dollar exchange was also contributing to the increases, but its impact was minimal compared to that of rising oil prices.  

“The outlook is bleak, though it has improved a little since the beginning of the month. With two more weeks before the official adjustment for October is made South Africans will be hoping the downward trajectory continues,” the AA said. 

 TimesLIVE