South African motorists won’t be hit as hard this November, but the petrol price will still rise by at least four cents to the litre.
That is according to the Automobile Association (AA), which was commenting on mid-month data provided by the Central Energy Fund. At the heart of the increase, once again, is the poor performance of the rand this month.
This problem is persisting for a second consecutive month. Had it not been for the decrease in the value of the rand, the price of petrol should have actually dropped at the end of September, but it didn’t.
“The landed price of petrol actually dropped by around 18 cents a litre in October, while the landed price of diesel showed a slight increase of five cents,” said the AA.
“But the rand slipped around 22 cents to the US dollar, meaning all grades of fuel will be more expensive in November,” added the AA.
In addition to the increased petrol price, diesel users will pay up to 26 cents more, with illuminating paraffin set to rise by 18 cents.
“Fuel prices have not yet felt the full effect of the rand’s weakening in the wake of Finance Minister Malusi Gigaba’s Medium Term Budget Policy Statement,” said the AA.
“We expect that impact to immediately start feeding into the next month’s fuel price calculations, meaning South Africans should prepare for further fuel price hikes before Christmas.”