According to the AA, the increases in the price of petrol in September 2023 will be the highest since July last year, while diesel prices will be hiked by a record level.

Commenting on unaudited data from the Central Energy Fund (CEF), the Automobile Association (AA) said the price of petrol was expected to climb by between R1.59- (ULP93) and R1.65/litre (ULP95) on Wednesday 6 September, while the wholesale price of diesel could increase by a massive R2.85/litre.

In the middle of last month, Cars.co.za reported that petrol was likely to increase by R1.41/litre (ULP93) and R1.45/litre (ULP95) and diesel by R2.60- or R2.61/litre, but since then, the situation has worsened – because international oil prices continue to rise on the back of slow demand and decreased output.

Reuters reports that analysts expected that Saudi Arabia, the world’s biggest oil exporter, would extend its voluntary output cut into October, keeping oil supply tight and prices high.

Predicted Fuel Prices for September 2023

“The price of a litre of ULP95 inland will rise from R22.83 to R24.48/l, while the price of ULP93 will increase from R22.43/l to R24.02/l. These prices are in line with those in August last year, but not at the record highs seen in July 2022,” the AA said.

“In the case of diesel, the hikes will push the suggested wholesale cost of this fuel from R20.21/l to R23.06/l – the highest it has been since December last year.

According to the CEF’s data, higher international oil prices are contributing between 80% and 88% to the expected increases with the weaker Rand/US Dollar exchange rate contributing the rest.

“While the Rand has weakened on average against the Greenback in August, it’s not a major contributor to the expected increases – that falls squarely on rising international oil prices,” says the AA.

Suffice it to say that the increases in the fuel prices – especially that of diesel – will have negative consequences for all consumers as higher input costs will be recovered through higher prices at the till.

“Motorists will certainly feel the pinch in terms of higher prices at the pumps, but consumers across the board can expect higher prices for all goods and services because of these hikes. In this environment, we reiterate our advice to motorists that they should keep their vehicles in good mechanical condition and their tyres inflated according to manufacturers’ specifications to ensure optimal fuel usage.

“Avoiding heavy traffic, not overloading the vehicle, and minimising driving where possible are other measures to decrease fuel consumption,” the AA concluded.

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