Fuel prices expected to increase in November

The Automobile Association (AA) has warned that the five-month trend of decreasing fuel prices is likely to end in November. Unaudited data from the Central Energy Fund (CEF) suggests that consumers should expect the first fuel price hike since May, driven by rising international costs and the rand’s depreciation against the US dollar.

According to the CEF, ULP95 may increase by around 14 cents per litre, ULP93 by three cents, and diesel by between 13 and 14 cents. Illuminating paraffin could see a rise of seven cents per litre.

“Stable and lower fuel prices are key to curbing inflation and reducing the cost of goods and services. Although the anticipated increases are modest, they come at a difficult time for many consumers facing financial challenges,” the AA said.

The association attributes the expected hikes to a sharp rise in international product prices in early October, worsened by the rand’s weakening. It also noted that tensions in the Middle East could further pressure the rand, potentially impacting local fuel prices in November.

The Department of Mineral Resources and Energy is expected to confirm November’s price adjustments by November 4, with changes taking effect on November 6. The AA cautioned that while prices may fluctuate before the final announcement, an increase is likely.