South Africans are facing a severe fuel cost crisis as petrol and diesel prices are set to skyrocket in October 2023.
- Unaudited mid-month data from the Central Energy Fund indicates potential increases of approximately R1.20 per litre for petrol and up to R2 per litre for diesel.
- These price hikes come on the heels of substantial increases in September, where petrol surged by R1.71 per litre and diesel by R2.76 per litre.
- If the projections hold true and current economic conditions remain unchanged, the price of 95 Unleaded petrol at the coast could exceed R25, while inland prices may reach around R25.74 per litre.
- The anticipated price hikes will place additional strain on the personal finances of South Africans, pushing fuel prices to levels not seen since July of the previous year.
- The main factors contributing to the rising fuel prices are higher international oil prices, which have surged since August, accounting for approximately 80% of the petrol price under-recovery.
- The depreciation of the rand against the US dollar also plays a role in the fuel price deficit, although its impact is relatively smaller.