Petrol, diesel price hike NEXT WEEK not as bad as forecast

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The latest data still suggests that South Africa’s motorists will face a fuel price hike next week, but not as bad as expected.

As reported by The South African website, petrol and diesel vehicle owners in Mzansi enjoyed a cut in the cost of petrol and diesel earlier last month.

It was the fifth straight month of decreases in prices. However, that ‘run’ appears likely to end next week.

This is due to a combination of the rand depreciating against the dollar and the price of oil continuing to rise thanks to ongoing unrest in the Middle East.

Below, the latest projections as received by The South African website from the Central Energy Fund (CEF), effective Thursday, 31 October.

FUEL	PRICE CHANGE
Petrol 93	increase of 14 cents
Petrol 95	increase of 25 cents
Diesel 0.05%	increase of 22 cents
Diesel 0.005%	increase of 20 cents
Illuminating Paraffin	increase of 21 cents

If the market conditions were to remain consistent for the remainder of the month – an unlikely scenario with the rand/dollar exchange rate ever fluctuating and the oil price changing – an increase of 14 cents is expected for petrol 93 octane motorists and an increase of 25 cents for 95 users.

Meanwhile, diesel motorists would see something between a 20 and 22 cents per litre increase.

Finally, illuminating paraffin is expected to increase by 21 cents.

FUEL PRICE IN SOUTH AFRICA IMPACTED BY TWO MAIN FACTORS:

1. The international price of petroleum products, driven mainly by oil prices

2. The rand/dollar exchange rate used in the purchase of these products

Oil price

At the time of publishing the brent crude oil price is $74.74 a barrel.

Exchange rate

At the time of publishing the rand/dollar exchange rate is R17.64/$.

The final overall price changes for both petrol and diesel will be confirmed in the days ahead with the new prices taking effect at midnight on Tuesday, 5 November.

Go easy on the accelerator until then, Mzansi.