South Africa has been hit with steep consecutive petrol price increases this year and the situation is expected to become grimmer in November.
This is according to the Automobile Association (AA) of South Africa which has warned of further exorbitant petrol price increases that are due to overburden an already embattled local economy. Again, this is disastrous news for consumers who are already battling to make ends meet.
South Africa hit hard by petrol price increases in 2018
This year has been especially brutal for motorists and general consumers alike. Inland motorists are currently paying over R17 for a litre of petrol. In March, a litre of unleaded 95 petrol cost R13.76.
The petrol price increase expected to rock the pumps in November will effectively mean that motorists are paying R4 more per litre compared to the beginning of the year. This is an astronomical increase with far-reaching consequences for South Africa as a whole.
Petrol prices increase November 2018
The AA believes that, due to tensions in the Middle East, international crude oil prices are sure to edge ever closer to the dreaded $100 a barrel mark. While South Africa has done well to claw back some earlier losses recorded between the rand and dollar, it will not be enough to offset the trend of global fuel hikes. Speaking to The Citizen, the AA said:
“International oil prices remain stubbornly high and it is possible that current tensions involving Saudi Arabia, one of the world’s biggest oil producers, could place more pressure on fuel prices.”
The organisation says that these international developments are expected to impact petrol prices in South Africa in the following ways:
- Petrol price increase of 40 cents.
- Diesel price increase of 70 cents.
- Illuminating Paraffin increase of 65 cents.
Government considers capping maximum petrol price
Energy Minister Jeff Radebe has reportedly commissioned a departmental task team to investigate the feasibility of fixing a maximum price for unleaded fuel.
Last week, Radebe confirmed that he had formed a team comprising of representatives from the Department of Energy and the Central Energy Fund (CEF). The team is set to report back to the minister with its findings no later than 18 October.
