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The Automobile Association says the five-month trend of fuel price decreases is set to end in November.
The Association, commenting on unaudited data from the Central Energy Fund, said it expects the first fuel price increase since May in November as a result of higher international product prices and a steady softening of the Rand against the US Dollar.
It says according to the CEF’s figures, ULP95 is expected to be slightly higher by around 14 cents a litre, while ULP93 is set for an increase of around three cents/l.
Diesel is expected to increase by between 14 cents and 13 cents/l while illuminating paraffin will increase by around seven cents a litre.
“Lower stable fuel prices play a crucial role in the decrease of inflation, and in lowering of the prices of goods and services.
“It would greatly benefit our economy if the fuel price decrease trajectory continued for longer but the expectant increase, though marginal at this stage, comes at a time when most consumers and motorists are still struggling financially and any increase now will add pressure on them,” said spokesperson, Eleanor Mavimbela.
She said due to the tensions which are ramping up in the Middle East, the local currency could be under significant pressure going into the last two weeks of October and this could have a more significant impact on local fuel prices in November.
“At this stage it is important to keep an eye on that indicator as we head into the new month,” she said.
Fuel prices are officially adjusted fuel prices come into effect on Wednesday, 6 November with the official announcement from the Department of Mineral Resources and Energy (DMRE) expected by Monday 4 November.
