If you’re thinking of taking a long road trip this summer holiday, think again.
The fuel price situation in South Africa is threatening to turn into a full-blown crisis, with data from the Central Energy Fund indicating that petrol and diesel could see huge increases of R1 in November.
The diesel situation is even bleaker – with a R1.40 increase looking likely.
However, these early predictions are based on unaudited data made available on October 14, and it is possible that the situation could change between now and the end of the month.
South Africans are paying record prices for petrol, and a R1 increase would see the cost of a litre of 95 unleaded petrol rising to around R18.60 at the coast and R19.33 in the inland regions, where 93 unleaded petrol could reach R19.10.
A R1.40 diesel price hike would bring the wholesale price up to around R16.55 at the coast and R17.15 inland, keeping in mind that retail prices will be even higher than that as diesel prices are unregulated.
The predicted increases are as a result of surging international oil prices, with Brent Crude recently surpassing three-year highs. Yesterday, the commodity was trading at $84.86 (about R1250) a barrel, which is $10 more than it was averaging in September.
The rand has mostly played along, spending most of October below the R15 to the dollar mark, and trading at R14.70 yesterday, however this has not been enough to offset the rising oil prices.
Unless oil prices soften in the coming months, the fuel price is set to cause more hardship for South Africans, as it affects not only the cost of commuting but also the price of food and other essential items that require transportation.
Adding insult to injury is that illuminated paraffin is also looking set for an increase of around R1.40.