South Africa is bracing for significant increases in fuel prices in October, following a surge in international oil prices and a weaker rand-dollar exchange rate. The Automobile Association (AA) warned on Monday that unaudited data from the Central Energy Fund (CEF) indicated an impending rise in the price of petrol, diesel, and illuminating paraffin.
Petrol prices are expected to increase by around R1.20 per litre, while the wholesale price of diesel could climb as much as R2 per litre. Illuminating paraffin is also set for an increase, with current data showing an under-recovery of R1.84 per litre.
The AA cautioned that these increases would push fuel prices to levels last seen in July 2022, further straining the personal finances of South Africans. "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," the AA said.
The primary factor behind these potential price hikes is the substantial increase in international oil prices since August. This surge has been primarily driven by reduced output from major oil-producing nations. While the weaker rand-dollar exchange rate is also contributing to the increases, its impact is currently minimal compared to that of rising oil prices.
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