Transporters and motorists must brace for yet another hefty increase in the price of fuel in November, the Automobile Association has warned.
The AA said in a statement that according to the Central Energy Fund’s (CEF) latest mid-month data, petrol and diesel prices are likely to rise again next month after higher-than-expected average increases in the international oil price and due to a weaker rand.
“Consumers should brace themselves for more expensive fuel in November, as mid-month data from the Central Energy Fund (CEF) is showing increases to all fuels are 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,” the AA said.
“The current data shows petrol is expected to increase between 41 and 51 cents a litre, but the real concern now is the likely increases in diesel prices. The data is showing diesel will climb by around R1.60/l, a substantial increase in this fuel’s price. The impact of such an increase on ordinary citizens will be significant.”
The AA said that the rising cost of diesel, a major input cost for manufacturers, would ultimately hurt consumers as businesses would be forced to pass the increases down the line. Road Freight Association CEO Gavin Kelly warned earlier this month that spiralling diesel prices could bankrupt some transport businesses and force others to pass on the rising costs to their customers, leading to further consumer price inflation.
The CEF data is preliminary 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 in question now,” the AA said.
