Motorists in South Africa can expect fuel price increases in October 2019.
Consumers remain under considerable pressure in South Africa and motorists are facing yet another fuel price increase next month. According to the Automobile Association (AA), international oil prices increased in September 2019 and spiked further following the drone attacks on the Abqaiq oil refinery in Saudi Arabia.
Current predictions point to increases of 19 c/l for 95 Octane petrol and the price of diesel could go up by 25 c/l. The price of 93 Octane, however, is predicted to come down by 4 c/l.
"The landed price of fuels in South Africa jumped by as much as a Rand a litre in just three days after the attack, before settling back slightly. This turned a generally stable price picture into a negative one," says the AA.
Furthermore, the AA commented that the Rand performed strongly against the US Dollar which helped to offset the impact of higher oil prices.
"Without the Rand's performance, we could have been looking at price rises in excess of 40 c/l for some fuels," said the AA.
The threat of attacks on oil refineries and storage depots remains a major concern and if repeated, could cause further unpredictable price shocks for liquid fuels.
"South Africa's transport economy is underpinned by liquid fuels and is extremely vulnerable to price impacts and fuel shortages. Government should urgently prioritise mitigations to protect against the potential of conflict-related instability in oil supply and pricing," the AA concludes.