South African motorists are facing the prospect of another steep fuel price increase in November, following October’s record-breaking hikes that pushed inland petrol prices above R30 a litre for the first time.
Also see: Cyril Ramaphosa considers additional fuel relief after R24bn subsidy
The latest mid-month fuel price data indicate that petrol could increase by nearly R2 a litre, as rising international oil prices and pressure on the rand continue to drive up domestic fuel costs.
The potential increase comes as households and businesses struggle with higher transport expenses, raising concerns about the wider impact on the cost of living.
According to the Central Energy Fund (CEF) figures, petrol 93 is showing an under-recovery of R1.67 a litre, while petrol 95 is under-recovering by R1.72. Diesel is also under-recovering by R1.23 to R1.24 a litre. These figures indicate the potential adjustments required to align domestic prices with fuel costs, but the final November increases have not yet been confirmed.
October’s increases had already pushed inland petrol 95 to R30.25 a litre, while petrol 93 rose to R29.88. The wholesale price of 50ppm diesel reached R33.29 a litre.
Also see: South Africans slam RAF’s 33% fuel levy hike proposal
Government intervention
The government attributed October’s increases partly to the rise in average Brent crude oil prices from US$87.89 to US$101 a barrel, alongside tensions involving the United States and Iran, uncertainty over oil shipments through the Strait of Hormuz and higher shipping costs.
The prospect of further increases has intensified calls for government intervention. Automobile Association chief executive Bobby Ramagwede warned that record fuel prices are restricting access to “jobs, education and essential services”, with low-income households bearing much of the burden.
Meanwhile, the Congress of South African Trade Unions (Cosatu) has urged the government to use R10 billion earmarked for fuel price relief to cushion consumers. Speaking to CapeTalk, Cosatu parliamentary coordinator Matthew Parks said government intervention was “long overdue”, according to EWN.
With Finance Minister Enoch Godongwana due to deliver the Medium-Term Budget Policy Statement on Wednesday, motorists will be watching for possible relief as pressure mounts over rising transport and living costs.
Featured image: iStock/lcswart
Originally published by African Insider.
Also see: Massive fuel price hike triggers widespread public outrage
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