The five-month streak of fuel price drops is expected to halt in November as rising international oil prices and a weakening rand put pressure on local fuel costs, Cape {town} Etc reports.
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The Automobile Association (AA) says 95 Octane petrol may rise by 14 cents per litre, with 93 going up by three cents.
Diesel could increase by 14 cents, and illuminating paraffin by seven cents.
These hikes come as many consumers and motorists continue to face financial struggles.
Petrol and diesel prices in the country are mainly determined by the Basic Fuel Price (BFP), which is adjusted monthly based on data from the Central Energy Fund (CEF).
This data reflects potential over-recoveries, leading to price reductions, or under-recoveries, resulting in price hikes.
As of September 27, 2024, the review period for November showed over-recoveries of R1.40 for unleaded 95 petrol and R1.34 for unleaded 93, with wholesale diesel prices also likely declining by around R1.40 per litre.
However, by October 10, 2024, these over-recoveries had dropped significantly to 4 cents for unleaded 95 and 13 cents for unleaded 93.
The AA says the expected fuel price hikes are due to a sharp rise in international product prices since early October and the Rand’s steady weakening against the US Dollar, both crucial factors in setting local fuel prices.
‘Due to the tensions which are ramping up in the Middle East, the local currency could be under significant pressure going into the last two weeks of October and this could have a more significant impact on local fuel prices in November. At this stage, it is important to keep an eye on that indicator as we head into the new month,’ says the AA.
Fuel price adjustments take effect on Wednesday, 6 November, with the official announcement from the Department of Mineral Resources and Energy expected by Monday, 4 November.
While prices may change before then, the AA anticipates that November fuel costs will be higher than current levels.
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Picture: Gallo
