Rising international oil prices are expected to drive up fuel prices in the next months, although thanks to a favorable currency and oil price scenario earlier in September, oil will see a small respite in October.
According to late-month Department of Energy estimates, the price of 95 Unleaded petrol is likely to fall by about one cent in October, while the price of 93 Unleaded petrol is expected to fall by four cents. This indicates that 95 Unleaded petrol should cost R17.61 along the coast and R18.33 inland, while 93 Unleaded petrol should cost R18.11.
However, those who fill up with diesel should brace themselves for a 23-cent increase.
The wholesale price of diesel will rise to approximately R15.15 at the coast and R15.75 inland, with retail costs being higher due to the unregulated nature of diesel.
South African motorists should expect more fuel price increases in the coming months if global oil prices do not reduce.
Although it is still too early to forecast November fuel costs because so much can change in terms of oil prices and currency, the current daily data is concerning, indicating a deficit of around 70 cents for gasoline and slightly more than R1 for diesel.
Brent crude oil rose $80 last week for the first time in over three years, and it was trading at $81.26 as of this writing. As the world gradually recovers from the pandemic, there are expectations of rising demand and concerns about supply.