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South Africans should brace for more fuel price pain in October based on unaudited data from the Central Energy Fund (CEF) says the Automobile Association (AA). The Association says the current data is indicating an increase to petrol of around R1.20/litre and an increase to the wholesale price of diesel by as much as R2/l. Illuminating paraffin is also set for another increase with the data currently showing an under recovery of R1.84/l.

“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,” says the AA.

According to the CEF’s data the main driver behind the potential increases are higher international oil prices which have climbed substantially since August, mainly on the back of reduced output by major oil producing nations. The CEF’s data is showing that in the case of petrol, up to 80% of the increase can be attributed to higher oil prices while these prices are responsible for up to 86% of the expected climb to the price of diesel. The poorer Rand/US Dollar exchange is contributing to the increases, but it’s impact, at the moment, is minimal compared to that of rising oil prices.

“The outlook is certainly bleak, although it has improved a little since the beginning of the month. With two more weeks before the official adjustment for October is made, South Africans will be hoping the downward trajectory continues. Although increases are now a certainty for October, the question will be by how much fuel prices will ultimately rise,” concludes the AA.

NOTE TO EDITORS:

The Automobile Association (AA) does not regulate or adjust fuel prices in South Africa, nor does it have any input in how the fuel prices are calculated. Fuel prices are officially calculated and adjusted on the first Wednesday of every month by the Department of Mineral Resources and Energy (DMRE). The DMRE is the only entity which regulates, sets, and adjusts fuel prices in South Africa.

The AA publishes outlooks and fuel price commentary based on publicly available information and communicates movements to the fuel price in the interests of informing consumers.

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