For illustration purposes
While Christmas traditionally brings joy and good news, this festive season, motorists face the unwelcome prospect of significantly higher travel expenses for their holidays.
With most South Africans are too poor to even contemplate a good Christmas, those who have the financial means would also feel the effects.
Motorists were hoping the drop in fuel prices would continue into the holiday period, but data from the Central Energy Fund (CEF) paints a grim and painful picture.
However, most South Africans have come to know this as the usual way the government is treating them; giving 5c fuel relief, only to increase it ten times as much during a time when families hope to spend some money on more than the bare necessities.
Data from the CEF shows increasing under-recoveries for all fuel grades, with numbers in the red. The forecast is that on Monday, November 17, petrol prices could increase by about 19 cents per litre for 93-octane and 23 cents per litre for 95-octane.
Diesel could rise even higher with the price of diesel (0.05% sulphur) expected to increase by 69 cents per litre, while diesel (0.005% sulphur) is set to jump by 84 cents per litre.
Paraffin is expected to increase by 75 cents per litre.
The price hike is driven by several factors, including higher global Brent Crude Oil prices due to United States (US) sanctions on Russian oil.
Last month, the oil price decreased from $67.16 to $64.14 during the period under review, due to oversupply driven by increased global production and uncertainty caused by continued trade tensions.
While the rand appreciated on average against the US dollar (USD) from R17.29 to R17.49 per USD in October, it is now showing signs of decline, which could lead to further hikes in fuel prices.
Currently, a litre of 93 unleaded petrol costs R20.97 per litre, while 95 unleaded costs R21.12 per litre.
The wholesale price of 0.05% (500 PPM) diesel costs R19.13 per litre and 0.005% (50 PPM) costs R19.20 per litre.
The Department of Mineral Resources and Energy (DMRE) will make a final announcement of fuel prices by the end of November.
