Ricochet News

Another petrol price increase expected in November

OCTOBER 18, 2016
Another petrol price increase expected in November

Drivers should brace for another petrol price increase in November, the Automobile Association (AA) warned, citing unaudited mid-month fuel price data released by the Central Energy Fund (CEF).

In October, the Department of Energy increased the fuel price by at least 43c per litre while diesel increased by at least 23c per litre. 

“There has been a definite appreciation in oil prices since OPEC resolved to cut oil production,” the association said.

“The international price of petrol has climbed from 136 US cents per gallon to 148 cents since 27 September. Despite the rand’s gradual appreciation against the US dollar over the same period, there has been a substantial impact on what South Africans are likely to be paying at the pumps next month.”

The AA said that the current data is predicting petrol to increase by around 48 cents a litre, diesel by 64 cents and illuminating paraffin by 57 cents.

It added that the full effects of the rand’s recent decline in the wake of the NPA’s decision to charge Finance Minister, Pravin Gordhan with fraud had not yet filtered into the data. It could be expected to put further pressure on fuel prices before month end. 

“Our hope is that matter will be brought to a swift conclusion to reduce the tensions our markets are currently experiencing, and to bring more stability to our economic outlook,” the association said.

“This is essential to minimise further weakening of the Rand / US dollar exchange rate, which directly affects the price South Africans pay for imported commodities such as fuel.”