Further fuel increases on the cards

Despite hefty fuel increases early this month, South African motorists can expect further spikes in October.

This is according to mid-month fuel price data from the Central Energy Fund, indicating that petrol prices are set to increase by a maximum of R1.22 per litre, while diesel looks set to jump by R2.08 per litre.

These forecast increases are the result of ever-increasing international oil prices following a voluntary output of around 1.4 million barrels per day by the oil-producing (OPEC+) cartel that started in June and expected to continue into next year.

Oil price increases have added between 90 and 97 cents per litre to the price structures of petrol, and between R1.65 and R1.76 per litre to diesel so far this month.

The sustained downward trajectory of the rand against the US dollar during the first half of September also does not bode well for October’s projected fuel prices.

Current exchange rates are R18.86 for 1 US dollar, having slipped from R18.70 to the dollar at the end of last month.

This performance has added a further 24-28c/litre to next month’s fuel price predictions, depending on the type and grade.

Fuel prices for October currently look like this:

Petrol 93 – increase of R1.15/litre
Petrol 95 – increase of R1.22/litre
Diesel 0.05% – increase of R2.03/litre
Diesel 0.005% – increase of R1.93/litre

These are merely predictions, and the official fuel price increase will be announced at month end.

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