South Africans are facing a full-blown fuel cost crisis, with petrol and diesel prices set to increase yet again next month.
Unaudited mid-month data from the Central Energy Fund is currently pointing to increases of around R1.20 per litre for petrol and up to R2 per litre for diesel, the Automobile Association (AA) said.
This follows this month’s hefty fuel price hikes of R1.71 per litre for both grades of petrol and R2.76 for 50ppm diesel.
If the above predictions are accurate, and assuming that the current rand and oil price status quo persists until the end of September, mense will be paying just over R25 for 95 Unleaded petrol at the coast and around R25.74 inland.
“Should these significant increases materialise, they will push fuel prices to levels last seen in July last year, stretching the personal finances of South Africans even further,.
“Higher fuel prices will invariably lead to higher prices at the till, and which will be a blow to many who are already experiencing financial distress,” the AA added.
Higher international oil prices are the main culprit, having risen significantly since the beginning of last month, and contributing around 80% of the under-recovery for petrol.
Brent Crude oil was trading at $93.93 yesterday, having broken through the $90 mark earlier in August for the first time in 10 months.
This time last month, oil was trading around the $84 mark.
The rand, currently trading at R19.06 to the US dollar, is making a smaller contribution to the fuel price deficit.