Motorists warned to brace for hefty petrol price hike in November

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South Africans have been warned to brace themselves for a hefty petrol price increase from November.

According to the Automobile Association (AA), mid-month data from the Central Energy Fund (CEF) showed sharp increases to all fuels are likely in the new month.

How much?

The AA said the main contributor to the increases is higher-than-average international oil prices and, to a lesser extent, the weaker rand.

“The current data shows petrol is expected to increase between 41 and 51 cents a litre but the real concern now is the likely increases to diesel prices. The data is showing diesel will climb by around R1.60/l, a substantial increase to this fuel’s price. The impact of such an increase on ordinary citizens will be significant.”

Diesel price

The AA said the rise in the diesel price is a serious concern.

“Because diesel is a major input cost in many sectors, an increase to the price of this fuel will ultimately hurt consumers as manufacturers pass the increases down the line.”

This was echoed by the Road freight Association of South Africa (RFA) earlier this month after the price of diesel increased by 10 cents per litre with 0.05% sulphur and 15 cents per litre for 0.005% sulphur content.

Gavin Kelly, CEO of the Road Freight Association (RFA), said diesel is the fuel used by most transport companies in South Africa.

“It is the energy source that drives our logistics chain and every time it increases, it increases the cost of moving goods through South Africa and across South Africa.”

Preliminary data

The AA said the preliminary petrol data is expected to change before the end of the month.

“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 now.”

South Africa has seen a drop in the petrol price for the last two months with 93 octane petrol decreasing by 89 cents per litre, and 95 octane by R1.02  in October.

In September, both grades of 93 and 95 octane petrol decreased by R2.04 per litre.

Faizel Patel/ The Citizen