Fuel Prices Surge in SA: “A Grim October for Motorists”

In a disappointing turn of events for South African motorists, the Department of Energy and Mineral Resources (DMRE) has announced yet another round of fuel price hikes for October 2023, following the brutal increases experienced in September. These adjustments are set to put significant financial strain on citizens already grappling with economic challenges.

Petrol and Diesel Costs Soar

According to the official statement from the DMRE, petrol prices are set to surge by between R1.08 (for 93 Unleaded) and R1.14 (95 Unleaded) starting Wednesday, October 04. In addition, diesel prices will experience substantial increases, ranging from R1.93 (low-sulphur 50ppm) to R1.96 (500ppm). This means a liter of 95 Unleaded will now cost South African motorists R24.96 at the coast and R25.68 in inland regions, while 93 Unleaded will rise to R25.22. The diesel price hikes are even steeper, with the wholesale price of 50ppm reaching R24.51 at the coast and R25.22 inland, and 500ppm costing R24.29 and R25.01 respectively, excluding the retail margin.

Unaudited Data Predicts More Pain

Adding to the woes, diesel prices are anticipated to increase for the fourth consecutive month in October, as per unaudited fuel data from the Central Energy Fund (CEF). Petrol and illuminating paraffin prices are also expected to rise, marking the third consecutive month of increases. Diesel might see an approximate increase of R1.60/litre, while petrol could go up by 75c/l to 80c/l depending on the grade. Illuminating paraffin is likely to surge by over R1.50/l.

Factors Behind the Spike

These substantial adjustments are primarily driven by soaring international oil prices. While the weakened Rand/US Dollar exchange also contributes to the price hikes, its impact is relatively less significant compared to the international product prices, according to the Automobile Association (AA). These price hikes are hitting consumers hard, especially when coupled with the prevailing financial pressures faced by most South Africans.

A Call for Preparedness

In light of these developments, the AA advises motorists to adopt fuel-efficient practices such as maintaining vehicles in good mechanical condition, proper tire inflation, minimizing unnecessary trips, and judicious use of air conditioners. As the year-end holidays approach, budgeting for fuel expenses and preparing for possible additional increases in the coming months have become imperative for all South Africans.

The silence from the government regarding plans to address these escalating fuel prices is a cause for concern among citizens. As October unfolds, South African motorists find themselves in the unfortunate position of having to navigate a challenging economic landscape, with fuel prices reaching unprecedented highs.