Home South African AA says fuel price increases likely in November

AA says fuel price increases likely in November

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The Automobile Association said that unaudited data from the Central Energy Fund points to an increase in all fuel prices in November.

File picture: Ayanda Ndamane/African News Agency (ANA)

THE AUTOMOBILE Association (AA) said that unaudited data from the Central Energy Fund (CEF) points to an increase in the fuel price in November.

The AA statement follows three consecutive months of petrol price decreases while the diesel price has seen minor decreases and an increase in October.

Layton Beard, AA spokesperson, said that consumers should brace themselves for more expensive fuel in November.

He said the unaudited mid-month data from the CEF is showing increases for all fuels is likely in the new month.

“The main contributor to the increases is higher on average international oil prices and, to a lesser extent, the weaker rand.”

Beard added that the current data shows petrol is expected to increase between 41 and 51 cents a litre, but the real concern was for diesel prices.

“The data is showing diesel will climb by around R1.60 per litre, a substantial increase to this fuel’s price. The impact of such an increase on ordinary citizens will be significant.”

Beard said that because diesel is a major input cost in many sectors, an increase to the price of this fuel will ultimately hurt consumers as manufacturers pass the increases down the line.

“This is preliminary data and will change before the end of the month. 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.”

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