Petrol prices are expected to increase in November again, based on an un-audited mid-month fuel price data release issued by the Central Energy Fund. The possible increase will edge the cost of petrol closer to R17.00 a litre.
Petrol will jump to 40 cents more, setting the average price at R16.89 a litre for 93 and 95 petrol. Diesel and illuminating paraffin will rise by 70 cents and 65 cents respectively.
Although the rand has slightly strengthen against the US dollar and contributed to easing the fuel price increases, the Central Energy Fund attributed the rise to international oil prices and present tensions of the world’s biggest oil producers, Saudi Arabia. Both factors could place pressure on fuel pricing.
The Department of Energy’s (DoE) proposal to set a maximum price for the sale of 93 unleaded fuel would allow fuel retailers to set their own prices for fuel, provided it is set below the maximum cost by the government. If the proposal is accepted, there will be a slight relief for the pockets of motorists using 93 unleaded.
It is currently unclear as to where the proposal stands and if it will be accepted.
The economic impacts that the petrol price increase has is affecting many and Minister of Energy, Jeff Radebe, has pleaded with the business sector to not increase the price of goods as citizens do not have disposable income to deal with the rising retail prices.
Other impacts include possible fare hikes for bus and taxi commuters, leaving locals unable to pay for transport.
The Automobile Association (AA) has urged government to step in.
“We again call on the government to prioritise economic policies which inspire investor confidence. A stronger and more stable rand is the country’s only defence against the vagaries of the international oil price,” said AA