For eight months South Africans have toiled under the weight of consecutive fuel hikes which have impacted all major industries.
South African motorists and consumers are set to be spared further pain as the petrol price for November is expected to decrease.
For eight months South Africans have toiled under the weight of consecutive fuel hikes which have impacted all major industries. The knock-on effect of rising petrol prices cannot be understated, as most South African industries rely heavily on road transport for the delivery of goods and produce.
Petrol price set to decrease slightly in November
South African motorists have felt the immediate brunt of 2018’s fuel woes, with petrol prices rising by almost R4 per litre since the beginning of the year.
Thankfully, the Automobile Association (AA) of South Africa has some good news: Petrol prices are expected to decrease in November.
But before motorists breathe a sigh of relief, it’s important to note that while the price of unleaded fuel is set for a minimal, yet welcome, drop – diesel and illuminating paraffin are still set to rise, the former impacting the agricultural sector once more. The AA issued a statement citing it’s expected petrol prices for November 2018, saying:
“The rand’s modest gains against the US dollar have helped cushion the impact of rises in the landed price of fuel.
As a result, we expect the petrol price to drop by about 16 cents a litre. Unfortunately, diesel and illuminating paraffin will both increase by about 30 cents a litre.”
Let’s take a look back on the last tumultuous eight months of petrol prices, and beyond, to put the expected petrol prices for November 2018 into perspective.
South Africa’s petrol price in 2018:-
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This year’s dismal fuel hikes are a result of various culminating factors. In September, the rand took a serious dive against the US dollar, which was unable to soften the blow of uneasy crude oil prices. International factors, including an ongoing trade war been the US and China, has had a negative impact on all emerging economies, including South Africa.
The crude oil price has, naturally, seen some ebb and flow this year. While international oil prices still remain relatively mild, in comparison to a few years back, the cost of crude is expected to rise due to unrest in the Middle East.
Local factors, including an economic recession, a rising unemployment rate, political instability surrounding land expropriation which has knocked private investor confidence, and a general industrial malaise have all contributed to a weaker currency and rising petrol prices.
Government’s exorbitant fuel levies have done little to ease the petrol price hikes, in fact, the defunct Road Accident Fund (RAF) in particular has been a serious drain on motorists’ pockets – a fact which continues to anger consumers and civil societies.
South Africa’s petrol price over the last five years:-
Let’s take a look back to 2013. Crude oil prices were much higher, yet the rand was in a much better position to buffer exorbitant petrol price increases. In the last five years, South Africans paid the least for petrol in 2015, which is a result of the reverse dynamic – the oil price dropped massively, while the rand weakened slightly.
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