The Energy Department has attributed the current price hikes to the higher oil prices and the weaker rand to the dollar. Fuel prices are set to go up next month.
Diesel users will be the most affected as the price will increase by R1.43 a litre. Both grades of petrol will increase by 51 cents a litre. Illuminating paraffin will go up by 77 cents a litre.
The department’s Robert Maake says the high demand and continued low supply of diesel have led to a higher increase in diesel prices compared to petrol.
Meanwhile, Economist Koketso Mano says the price of fuel in the country is expected to slowly begin to decrease in the next few months. Mano says the expected slightly cheaper fuel prices for the country in the short term will depend on the risks on global oil markets and the strength of the Greenback.
“We project petrol prices to continue gradually easing over the next year, but remaining above pre-pandemic levels subject to unfolding risk on international oil markets, as well as the rand/dollar exchange rate, geo-political tension remains elevated, EU sanctions on Russian oil are looming, the US government will release reserves to limit price increases in the country, and the Fed is expected to increase rates further in November, supporting the stronger dollar.”