Fuel prices set to increase in November
17 October 2024 | SANews
According to the Automobile Association (AA), the five-month trend of declining fuel prices is expected to end in November.
Based on unaudited data from the Central Energy Fund (CEF), the AA predicts the first fuel price increase since May, driven by rising international product prices and a continued weakening of the Rand against the US Dollar.
The CEF’s figures indicate that ULP95 may rise by approximately 14 cents per litre, while ULP93 could increase by around three cents per litre. Diesel prices are expected to climb by 14 to 13 cents per litre, and illuminating paraffin may see an increase of about seven cents per litre.
“Stable, lower fuel prices are crucial for reducing inflation and lowering the costs of goods and services. A continued decrease in fuel prices would greatly benefit the economy. However, the anticipated increase, although modest, comes at a time when many consumers and motorists are still financially strained, adding further pressure,” the AA stated.
The AA attributes these expected increases to a notable rise in international product prices since early October and the ongoing decline of the Rand against the US Dollar—both significant factors in local fuel pricing.
“With rising tensions in the Middle East, the local currency may face additional pressure in the last two weeks of October, potentially impacting fuel prices more significantly in November. It’s important to monitor this situation as we approach the new month,” the AA advised.
Official fuel price adjustments will take effect on Wednesday, November 6. The Department of Mineral Resources and Energy (DMRE) is expected to announce the November fuel price changes by Monday, November 4, at the latest. The AA cautions that since this is a mid-month review of the CEF data, prices may change before the official announcement, but it anticipates that fuel will be more expensive in November than it currently is.