Another fuel hike on the cards in October, warns AA

The AA was commenting on unaudited data from the Central Energy Fund (CEF).

According to the latest data, the price of petrol is expected to increase by around R1.20 per litre, while the wholesale price of diesel could shoot up by R2 per litre.

The price of illuminating paraffin is also set to increase by R1.84 per litre.

The association’s spokesperson, Layton Beard, said the latest increases will see petrol prices reach their highest level since July 2022.

"Should these significant increases materialise, they will push fuel prices to levels last seen in July last year, stretching the personal finances of South Africans even further. Higher fuel prices will invariably lead to higher prices at the till, which will be a blow to many who are already experiencing financial distress.

"According to the CEF’s data, the main driver behind the potential increases is higher international oil prices, which have climbed substantially since August, mainly on the back of reduced output by major oil-producing nations. The CEF’s data shows that in the case of petrol, up to 80% of the increase can be attributed to higher oil prices, while these prices are responsible for up to 86% of the expected climb in the price of diesel.”

The weaker rand is also a contributing factor.

"The outlook is certainly bleak, although it has improved a little since the beginning of the month. With two more weeks before the official adjustment for October is made, South Africans will be hoping the downward trajectory continues. Although increases are now a certainty for October, the question will be by how much fuel prices will ultimately rise," said Beard.

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