By Kouthar Sambo
South Africans may have to fork out more from their pockets this November following recent unaudited data from the Central Energy Fund (CEF) forecasting an increase for all grades of fuel in November.
According to the data, 93 and 95 unleaded petrol are expected to increase by 14 and 25 cents a litre.
Speaking to VOC News, an energy expert, Redge Nkosi, described the phenomenon as “some volatility in the oil prices abroad” therefore impacting South Africa at large.
“The CEF data shows an increase in fuel prices in every province in the country. To a large extent, the rand/dollar exchange has been fairly stable, so these changes are a consequence of the volatility in the oil prices,” explained Nkosi.
However, he attributed the potential of an unstable energy environment for South Africa to the ongoing tension in the Middle East.
“It is not clear whether we will go up or down, as the situation largely depends on how matters unfold in the Middle East following Israel’s attack on Gaza, Iran, and Lebanon.”
“The Ukraine/Russian war has been stable, so this does not impact oil prices. However, the major fluctuation comes from the tension in the Israel/Iran conflict,” he noted.
Furthermore, he clarified that the stability of the rand would enable a rather “mild increase or decrease.”
“Hopefully, by December, the energy sphere in South Africa will stabilize due to the rand’s strength, but this also depends on how tension unfolds in the Middle East,” added Nkosi.
Photo: VOCfm
