November fuel price: SA motorists could face another SHOCK

South African motorists could face another sharp increase in fuel prices in November, with early figures pointing to a possible R4.58-a-litre hike for 95 petrol.

The latest projections come just a day after October’s fuel price adjustments pushed inland petrol above R30 a litre.

Early data from the Central Energy Fund (CEF) suggests motorists could face further increases across all fuel grades next month.

However, the figures remain preliminary.

HOW MUCH COULD PETROL COST IN NOVEMBER?

According to early CEF data, the projected increases are:

• Petrol 93: R4.29 per litre
• Petrol 95: R4.58 per litre
• Diesel 0.05%: R2.56 per litre
• Diesel 0.005%: R2.91 per litre
• Illuminating paraffin: R5.00 per litre

If the projections hold, inland 95 petrol could approach R35 a litre in November.

The latest estimates follow Wednesday’s fuel price increases, which saw petrol 95 rise by R3.33 a litre and petrol 93 by R3.12.

Diesel also increased by between R2.84 and R3.24 a litre.

WHAT IS DRIVING THE PROJECTED INCREASE?

According to a report, Investec chief economist Annabel Bishop warned that rising international petroleum prices and a weaker rand were pushing up November’s fuel price projections.

Bishop indicated that higher international fuel costs account for more than R4 of the potential petrol increase, while the exchange rate adds roughly 50 cents.

South Africa’s reliance on imported fuel leaves local prices exposed to movements in international markets and the rand-dollar exchange rate.

The latest projections come amid higher global oil prices and continued uncertainty in energy markets.

CALLS FOR FUEL LEVY RELIEF

Bishop has also called for another reduction in the general fuel levy to ease pressure on consumers.

“A cut in the general fuel price levy is warranted again, in the face of the additional potential consumer stress,” she said.

A further increase would place additional pressure on households already paying more for transport and other essentials.

Higher diesel prices could also affect businesses that rely on road freight, with increased operating costs potentially filtering through to consumers.

Bishop warned that sustained fuel price increases could push consumer inflation above 5%.

WHEN WILL NOVEMBER’S PETROL PRICE BE CONFIRMED?

The Department of Mineral and Petroleum Resources has not announced November’s official fuel price adjustment.

The CEF tracks movements in international petroleum prices and the rand-dollar exchange rate throughout the month.

These factors determine whether motorists face an increase or decrease at the pumps.

The department is expected to announce the final adjustment towards the end of October, with the new prices taking effect on Wednesday, 4 November.