Petrol and diesel set to surge above R30 in October: these are the latest projections

Petrol and diesel prices in South Africa are expected to soar above R30 in October, according to the latest projections from the Central Energy Fund. The potential increases for petrol range from R3.21 for 95 Unleaded to R3.01 for 93 Unleaded, while diesel costs could rise between R2.75 for 500ppm and R3.15 for 50ppm. If these forecasts hold true, 95 Unleaded petrol will hit approximately R29.26 at the coast and R30.13 in Gauteng, while 93 Unleaded is anticipated to climb to around R29.93.

Similarly, 500ppm diesel could reach about R30.98 along the coast and R31.86 inland. These projections are notably more severe than the initial estimates from two weeks ago, which predicted a rise of around R2.40 for petrol and between R2.04 and R2.40 for diesel. September saw significant fuel price hikes, with petrol increasing by R1.34 per litre and diesel between R2.94 and R3.15.

The upcoming fuel price hikes could be exacerbated by the Slate Levy, which compensates oil companies for fluctuations in the previous month. Recent geopolitical tensions, particularly in the Middle East, have driven up international oil prices. Brent crude reached a four-month high of $108 per barrel this month, following heightened tensions in the region and attacks on Saudi Arabian infrastructure by Iran-based fighters.

The US-Iran standoff has contributed to fuel price volatility as oil markets swing with each development. Despite some easing of supply concerns following Saudi Arabia's resumption of tanker loadings and the restoration of its East-West Pipeline, fears of further conflict and stalled peace efforts keep fuel prices on a precarious path.