Although the state intervened in August to cap September’s fuel price increase and limited it at a mere 5cent increase, the Central Energy Fund has warned that a weaker rand and higher international fuel prices have contributed to an increase of more than a rand for October.

The ever-rising fuel prices have become a political topic, as the state inserted itself and capped the September increase – it was originally predicted to be an increase of between 25 and 28 cents. The government has, however, insisted that the cap was a once-off and will not be repeated.

This intervention is estimated to cost the government nearly R500-million.

Unleaded 95 petrol will now increase by R1.11 – 65c of this is as a result of a weaker rand, while 45c can be attributed to the rising price of oil.

Diesel will increase the most – by R1.37. Illuminating paraffin will now be 1.36 more expensive.

Thus far into September, the rand has slipped by 2.63% against the US dollar.

On Tuesday morning, however, the rand gained traction of almost 1% against the dollar, and analysts have predicted it may strengthen in the short term.

Picture: Pixabay

Article written by

Lucinda Dordley

Lucinda is a hard news writer who occasionally dabbles in lifestyle writing, and recent journalism graduate. She enjoys reading the works of Stephen King, and exploring the beauty of Cape Town and its surrounds.