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Another hefty petrol price increase is on the cards for SA motorists

18 October 2021 6:37 PM
Tags:
Petrol price
Fuel prices
AA Petrol Prices

Bruce Whitfield speaks to Kevin Lings, chief economist at STANLIB about November's likely fuel price increase.
  • The Automobile Association of SA says latest data indicates that petrol price could rise by 99c next month
  • Diesel could cost R1.42 more in November
  • The increase will see petrol rising to a record high of more than R19 a litre inland and more than R17 for diesel

Picture: EWN

South African motorists need to brace themselves for yet another massive fuel price hike in November.

According to an article on EWN website, the Automobile Association of South Africa has warned motorists to brace for fuel prices hikes of "catastrophic proportions" next month.

The AA predicts that the petrol price could increase by 99c a litre while diesel and paraffin will cost motorists a massive R1.42 cents more per litre.

The increases would push the price of 95 unleaded petrol to a record high of R19 a litre and R17 a litre for diesel inland.

In order to avoid the R1 on petrol and the R1.40 on diesel, we would actually have to have a dramatic decline in the oil price, or a very substantial strengthening of the Rand, both of which seem somewhat unlikely at this stage.

Kevin Lings - Chief economist at STANLIB

The main pressure's coming from the oil price. With oil at over $80 a barrel and trending higher, I'm not sure what would turn that around.

Kevin Lings - Chief economist at STANLIB

It's going to push the petrol price up over R19, so yes it's entirely feasible that we'll have R20 a litre for petrol before the end of the year, in time for the Christmas season.

Kevin Lings - Chief economist at STANLIB

I'm worried about electricity where we still got to digest the 13% increase, that hasn't really been factored in fully yet.

Kevin Lings - Chief economist at STANLIB

Unfortunately, this is occurring at exactly the wrong time because a huge number of people try move around at Christmas time.

Kevin Lings - Chief economist at STANLIB

If you look at the basket of goods that people spend their money on, it's essentially transport and food. Both of those areas now under enormous pressure.

Kevin Lings - Chief economist at STANLIB

Scroll to the top of the article to listen to the interview.




18 October 2021 6:37 PM
Tags:
Petrol price
Fuel prices
AA Petrol Prices

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