October fuel price projections getting bleaker by the day as oil hits $108 per barrel
Oil prices surge above $107 as Middle East tensions threaten supply routes, with October petrol and diesel prices now on track for fresh record highs.
As oil prices soar towards $108 per barrel, fuel price projections for South Africans are becoming increasingly dire. The Central Energy Fund predicts a potential increase of up to R2.41 for 95 Unleaded petrol and between R2.04 and R2.40 for diesel in October. These projections have risen significantly since just a week ago, when the data suggested smaller increases.
South Africans are on track to pay around R28.30 per litre at the coast and R29.32 in Gauteng, surpassing previous records of R27.19 and R28.06. The wholesale price of 50ppm diesel could reach at least R31.94, surpassing its previous peak of R30.62. These increases come after steep hikes in September, when petrol rose by R1.34 and diesel by between R2.94 and R3.15.
With government unlikely to reinstate temporary fuel tax relief measures, easing the blow for consumers will be a challenging fiscal decision. Finance Minister Enoch Godongwana warned that permanently offsetting these increases through the budget would shift costs to taxpayers or increase government borrowing. The market remains focused on the Middle East, where tensions persist and disruptions to global energy supplies are a looming concern.
Written by urgent.news from IOL's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
