As per unaudited data released by the Central Energy Fund (CEF), the Automobile Association (AA) has warned South Africans to prepare for more financial strain at the pump come October.
Basing its projections on the current data, the AA anticipates an approximate increase of R1.20 per litre in petrol prices and a R2 per litre hike in wholesale diesel prices. Illuminating paraffin is also not spared, with data indicating a rise of R1.84 per litre.
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The AA cautioned that if these substantial increases occur, they will drive fuel prices to levels last witnessed in July 2022, further stretching the already burdened personal finances of South Africans.
‘Higher fuel prices will invariably lead to higher prices at the till, which will be a blow to many who are already experiencing financial distress,’ it stated.
According to the CEF’s data, the primary catalyst behind these potential increases is the surge in international oil prices, which have seen a significant uptick since August. This surge is primarily attributed to decreased oil production by major oil-producing nations.
The CEF’s data indicates that up to 80% of the projected petrol price increase can be attributed to these higher oil prices, while they are responsible for up to 86% of the expected diesel price hike. While the weaker Rand/US dollar exchange rate is playing a role in these increases, its impact currently pales in comparison to that of the surging oil prices.
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‘The outlook is certainly bleak, although 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. Although increases are now a certainty for October, the question will be how much fuel prices will ultimately rise,’ the statement concluded.
Please note that the AA provides these outlooks and fuel price commentary based on publicly available information, aimed at keeping consumers informed.
Official fuel prices are calculated and adjusted on the first Wednesday of every month by the Department of Mineral Resources and Energy (DMRE), the sole authority responsible for regulating, setting and adjusting fuel prices in South Africa.
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