Fuel price expected to rise in November
After five months of declining fuel prices, the Automobile Association anticipates an increase in November, creating added financial pressure for consumers.
The Automobile Association (AA) has indicated that the trend of decreasing fuel prices, which has lasted for five months, is expected to conclude in November. Insights drawn from unaudited data provided by the Central Energy Fund (CEF) reveal that consumers can anticipate the first fuel price hike since May, driven by rising international product costs and a consistent depreciation of the Rand against the US Dollar.
Based on data from the CEF, the price of ULP95 is projected to rise by roughly 14 cents per litre, while ULP93 is expected to increase around three cents per litre. Diesel prices might see a rise of between 13 and 14 cents per litre, accompanied by an increase of about seven cents for illuminating paraffin.
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“Stable and lower fuel prices are essential for combating inflation and reducing the costs of goods and services. A continued decline in fuel prices would significantly support our economy. However, the anticipated increases, although modest, come at a troubling time for many consumers still grappling with financial challenges. Any rise in prices now will exacerbate their struggles,” remarked the AA.
The AA attributes the expected price increases to a notable rise in international product prices that began in early October, compounded by the Rand’s consistent weakening against the US Dollar – both crucial factors affecting local fuel pricing.
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“With escalating tensions in the Middle East, the Rand may face considerable pressure in the final weeks of October, which could significantly affect local fuel prices in November. Monitoring this indicator will be essential as we approach the new month,” the AA cautioned.
The official adjustment of fuel prices will take effect on Wednesday, November 6. The Department of Mineral Resources and Energy (DMRE) is anticipated to announce the November fuel price adjustments by November 4, at the latest. The AA also notes that as this is a mid-month review of the CEF data, pricing may fluctuate before the announcement, but an increase in fuel costs for November is likely.
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