South Africans are in for a steep increase in fuel prices in November.
This is according to the Automobile Association (AA) which was commenting on recent exchange rate and commodities data.
The AA said the current picture is showing petrol is up by 99 cents a litre, and diesel and illuminating paraffin higher by a whopping R1,42 a litre. “This will push 95 ULP inland above R19/l (close to R19,30/l), and R17/l for diesel. Taking this potential increase into account, the price of a litre of fuel inland (95 ULP) will have increased from R14,86/l in January to R19,30/l in November – a 30% increase over 11 months.”
The AA added that the hikes in diesel and illuminating paraffin would be the largest in South African history, bearing in mind that this is only based on half a month’s data. “R20 a litre for petrol is now a realistic scenario before the end of 2021,” adding that it sees little hope of improvement before the end of October.
The Association says it does not expect the oil price squeeze to ease in the short term, especially as the demand for oil will increase as the north enters winter.
“South Africans are paying at the pumps for weak governance, as one of the key indicators of the price of fuel depends on the exchange rate,” the Association concluded.
