Diesel and petrol prices for the coming month are looking pretty bad.
According to the most recent data from the Central Energy Fund, diesel and petrol prices currently appear to be on the rise with two weeks left before November’s fuel figures are set.
According to News24, the most recent data, an R1.58 to R1.61 increase in diesel prices is anticipated.
This would increase the price of diesel in Gauteng above R25.60 per litre. Diesel in Gauteng cost about R17.20 per litre a year ago. It is anticipated that the cost of 95 unleaded petrol will rise by about 42 cents per litre, while the cost of 93 petrol may increase by up to 51 cents per litre.
What’s fueling the rise of diesel and petrol prices?
The price of oil and the rand-to-dollar exchange rate determine how much fuel costs each month on the first Wednesday. The final fuel prices for November will still be impacted by movements in the rand and oil over the next two weeks.
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The rand has suffered so far this month, falling from R18.10/$ at the beginning of October to nearly R18.50 last week as the dollar strengthened in response to market turmoil around the world and expectations of significant US interest rate increases.
After beginning the month below $90, the price of a barrel of Brent crude oil on Monday was around $91.70.
Diesel prices have only decreased by 5% since reaching a record high in July, but they have decreased by more than 16% since then. This is because of a global shortage of diesel, which is making the price situation much stickier.
Due to a protracted strike at French oil refineries, this is happening even though US diesel inventories are at an all-time low for this time of year.
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Europe, which produces more gasoline than it consumes, has been having trouble obtaining diesel for the past few months. Diesel exports from Russia were halted by the invasion of Ukraine and the ensuing sanctions. As a result, prices have risen as European nations scramble to find substitute sources for diesel.
The local demand for diesel in South Africa has been fueled by increased truck deliveries due to ongoing issues with the railways. The Department of Energy reported that South Africa used 10.77 billion liters of gasoline and 12.9 billion liters of diesel in 2019.
The inability to fuel Eskom’s emergency generators due to a lack of diesel supplies has also contributed to load shedding
.
