By: Natasha Archary
The Automobile Association of South Africa (AA) predicts a fuel price increase is on the cards in November.
In a statement, the AA says consumers should brace themselves for a steep increase in the cost of petrol and diesel due to a mid-month analysis of data from the Central Energy Fund (CEF).
The CEF shows an increase in all fuels is likely next month due to a higher than average rise in international oil prices.
A weaker Rand is also contributing to the early prediction, and while this is only a pre-emptive outlook, the AA says a possible change may come before the month’s end.
“The current data shows petrol is expected to increase between 41 and 51 cents a litre, but the real concern now is the likely increase to diesel prices.
Data shows diesel will climb by around R1.60/litre which is a substantial increase to this fuel price.
The impact of such an increase on ordinary South Africans will be significant, the association says.
According to the AA, diesel is a major input cost in many sectors, and an increase to the price of this commodity will ultimately hurt consumers as manufacturers pass the increases down the line.
“While these figures may change, we don’t expect a reversal; prices are still likely to go up in November. For now, it’s just the quantum of those increases that is at question now,” concludes the AA.
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