South African motorists have been warned of another looming steep hike in the price of petrol and diesel in October.
According to data from the Central Energy Fund (CEF), fuel prices are likely to increase to about R1.20 per litre and up to R2 per litre for diesel depending on the grade.
The looming increase follows on the R1.71 per litre rise for both grades of petrol and a R2.76 jump for 50ppm diesel in August.
Should the prediction by the CEF take effect, motorists will pay just over R25 for 95 unleaded petrol in coastal provinces and just below R26 for inland provinces.
The 93 unleaded will rise to about R25.34.
“Should these significant increases materialise, they will push fuel prices to levels last seen in July 2022, stretching the finances of South Africans even further,” said the CEF.
Local fuel prices are largely determined by international oil costs and the rand exchange rate. This is because oil is priced in US dollars.
Data from the CEF shows that in the case of petrol, up to 80% of the increase can be attributed to higher oil prices.
The high oil prices are responsible for up to 86% of the expected increase in the looming hike in the price of diesel.
Brent crude oil is currently trading at about $94 (R1 782) a barrel from $84 in August. The price of Brent crude oil has now climbed more than 30% since a recent low point in March.
Saudi Arabia and Russia have cut their oil production, squeezing oil prices higher. Some analysts expect to see the Brent crude oil move above $100 a barrel soon.
“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,” said the CEF.
The official petrol and diesel prices for October will be announced soon before they come into effect on October 4.
