Update: Since this story was published on Friday, the Department of Energy has released its mid-month fuel price data, and it shows that a small price decrease is now looking likely. Click here for more.
JOHANNESBURG - South African motorists and commuters, who are already feeling the pressure of record fuel prices, are likely to pay even more at the pumps from October 2021.
Just how much more remains to be seen, given that the Department of Energy is no longer publishing daily fuel price updates on the Central Energy Fund’s website. However, having studied the oil price and currency data for the month so far, the Automobile Association is predicting a fuel price increase at the beginning of October.
"We have noted oil prices spiking above $75 a barrel in recent days, and the upward trend has been evident throughout September,” the association said. “Brent Crude in particular has increased by $10 a barrel in less than a month, and the Mediterranean and Singapore prices used in South African fuel pricing are also on the advance. This trend could point towards substantial future fuel price increases.”
According to the AA, the rand to US dollar exchange rate has been flat for the first half of September, with movements in a relatively limited range. However, recent weakening, combined with higher international petroleum prices, could push fuel prices into negative territory by month-end, the association said.
"Until government manages domestic policy more effectively, the rand will continue to expose South Africans to the full brunt of bullish oil prices, meaning South Africans are not getting fuel as cheaply as they could be," the AA concluded.
The Department of Energy says it will publish the fuel price data relevant to October at the end of this month.