- The price of fuel is set for an expected record increase at the end of November, the AA announced
- The sharp rise in pricing is attributed to a weak rand value and real-time oil price data
- If the current projections are believable, then the hike would become the biggest in the country's history
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Another fuel price increase is on the cards for South African motorists following the hike in October, the Automobile Association (AA) has announced.
The hefty increase is expected to come in November after preliminary data from the Central Energy Fund indicated the price will likely go up to just under R1, with a realistic figure predicted to be at around 98 cents per litre.
SABC News reported the price of diesel could increase by R1.41 cents per litre, while the price of paraffin will likely reach R1.42 cents per litre.
The AA said the prospect of an even heftier R20 a litre for petrol is a more practical outcome before the end of the year.
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If the said data is believable, it would be the largest hike for diesel and illuminating paraffin in the country's history, according to eNCA.
Hike set to be biggest ever
The AA's predictions are based on the real-time data collated per the rand-dollar exchange and oil price.
Briefly News understands that Gauteng motorists are currently paying R3.47 more per litre of petrol compared to January.
"Inland provinces will see 95 unleaded petrol going up beyond R19 per litre and R17 a litre for diesel.
"Looking at the likely increase, the price of a litre of fuel inland would have increased from R14.86 in January to R19.30," said the AA's spokesperson Layton Beard.
Meanwhile, crude oil is reportedly trading at about $85 a barrel, following a consistent increase since the fourth week of August. The energy department will announce the fuel price adjustment at the end of the coming week.
Looming fuel crisis raises concerns for economists: "Time to start riding bikes"
In related news, Briefly News previously reported that Chief Economist at Efficient Group Dawie Roodt revealed that the rising petrol price and the global energy crisis will soon add pressure on South Africans.
Similarly, Chief Executive of Debt Rescue Neil Roets stated that SA's excessive fuel costs are one of the most important causes of diesel increasing by 69% and petrol by 85% since 2011.
Broken down, this translates to a 50-litre tank of petrol costing over R915 versus it being under R500, 10 years ago.
Roets explained that the country is entering the last quarter of the year and customers are now looking forward to the holiday season. However, abrupt and intense price increases are expected across the board.
Source: Briefly News