Anti-climactic fuel price hike looms

Earlier this month, fuel prices decreased for the fifth consecutive month, reaching the lowest they have been in well over two years.

October’s fuel price adjustment saw 95 and 93 unleaded petrol drop by R1.14 and R1.06 per litre respectively, while diesel was lowered by R1.12 per litre and illuminating paraffin by R1.48.

ALSO READ: #PetrolPrice: 5 tips for fuel efficient driving

In May, 95 unleaded petrol cost a staggering R24.70 a litre in coastal areas, and is now just over R20.

However, South Africans should not rejoice just yet, as next month’s fuel adjustment does not look promising, with a price hike expected in November.

Petrol prices can be expected to increase by between 3 and 14 cents per litre, and diesel prices by around 14 cents per litre.

Regardless of this expected increase, there is still hope.

A week after October’s fuel price decrease, Mineral and Petroleum Resources Minister Gwede Mantashe announced – during the 2024 Africa Oil Week Conference – that he was making attempts to further lower the cost of fuel.

Mantashe noted an improvement in the global energy market, leading to the consistent decrease in South Africa’s fuel price.

He said petrol and diesel should cost only R14 per litre, bringing down with it the cost of living in the country.

To achieve this, associated taxes and levies would need to be excluded from the cost of fuel. However, doing so means other taxes would have to be increased to cover those areas, so it is not necessarily the ideal solution.

Don’t have the ZO app? Download it to your Android or Apple device here:

HAVE YOUR SAY