Petrol prices are rising in April – but not by as much as first feared – Photo: Flickr

Petrol price to increase in October: This is what you’re likely to pay

Despite a decrease being predicted earlier this month, a diplomatic nightmare in the Gulf now means that the petrol price for SA will increase in October.

by Tom Head

26-09-2019 18:09

in News

Petrol prices are rising in April – but not by as much as first feared – Photo: Flickr

South Africa is set to endure its eighth month of petrol price increases in 2019, after data released by the Central Energy Fund (CEF) revealed how more misery will be heaped on the motorists of Mzansi.

Petrol price increase for October – what will it cost us?

Petrol is set to be hiked by a further 19-cents-per-litre, whereas diesel goes up even more. A 24-cent-per-litre increase will be implemented at the start of next month, based on current numbers. The increase brings the per-litre petrol price within 90 cents of its higher ever total.

Speaking through a statement released last week, the AA indicated that recent geo-political events would severely dent the chances of seeing a reduction. A drone strike on a key Saudi oil production line is thought to have taken 5% of the global oil supply offline, sending prices for fuel through the roof.

Why are fuel costs rising again?

Just ten days ago, it was forceast that a decrease may be on the cards for South Africa in October. CEF was suggesting that a rally from the rand against the dollar would stem the tide of a rising petrol price. However, a slump in currency and oil security has lead us right back to square one – something the AA are all too aware of:

“The refinery strike was a game-changer for the way oil price stability is viewed. At a single stroke, five to seven percent of the world’s oil output has been wiped from the board, leading oil prices to surge disproportionately. The potential for copycat attacks on other oil installations now that their vulnerability is clear remains a concern.”
“We believe government should review short-term risk mitigations, including increased biofuel production, electric vehicles, and better public transport. Given the recent developments, these mitigations should now become urgent priorities for government.”
AA statement earlier for October

Current crude oil price

Saudi politicians are already accusing Iran of orchestrating the attack, and we’ve got a diplomatic nightmare that threatens to fuel the flames of instability even further. Earlier in the month, the price for a barrel of oil jumped from $60 to $67 – a rise of more than 10%.

Official data shows that the initial reaction to the devastating attack could have put prices 20% higher. They have somewhat stabilised, after the US agreed to release some of their own oil reserves, but the recovery hasn’t been enough to offset the devastating ramifications of the attack.