Consumers should brace themselves for more expensive fuel in November, as mid-month data from the Central Energy Fund (CEF) is showing increases to all fuels are likely in the new month, says the Automobile Association (AA).
The main contributor to the increases is higher on average international oil prices, and to a lesser extent, the weaker Rand.
“The current data shows petrol is expected to increase between 41 and 51 cents a litre but the real concern now is the likely increases to diesel prices. The data is showing diesel will climb by around R1.60/l, a substantial increase to this fuel’s price. The impact of such an increase on ordinary citizens will be significant,” says the Association.
The Association says because diesel is a major input cost in many sectors, an increase to the price of this fuel will ultimately hurt consumers as manufacturers pass the increases down the line.
The Association says this is preliminary data and will change before the end of the month.
“While these figures may change, we don’t expect a reversal; prices are still likely to go up in November. For now, it’s just the quantum of those increases that is at question now,” concludes the AA.