As if load shedding isn’t bad enough, the petrol price may be going up too
- If you use fuel to run generators during load shedding, you may have to prepare to pay more soon, new data from the Central Energy Fund suggests.
- The CEF calculates anticipated fuel price increases or declines based on the exchange rate and Brent crude oil price.
- It showed that 95 unleaded petrol is set for an increase in November, though 93 unleaded is set for a decline.
- For more go to Business Insider.
South Africans who were shocked by a return to load shedding on Wednesday morning should also start to prepare for a possible fuel price increase in November.
Eskom on Wednesday announced stage 2 load shedding, from 09AM until 11PM due to a shortage of capacity - the first time rolling blackouts have been implemented since since March.
In an interview with 702, Eskom Chief Operating Officer Jan Oberholzer said the situation is likely to continue until next week.
Fuel consumption increases during load shedding as consumers and businesses turn to petrol and diesel-powered generators for electricity.
Also read: The petrol price is up 32% since 2012 – even though right now a barrel of oil costs almost exactly what it did then
The latest data from the central energy fund (CEF) on Tuesday showed that the price for 95 unleaded petrol will increase by 7c in November, if current conditions hold.
The CEF’s daily fuel price calculation takes movements in the Brent crude oil price and strength of the rand into consideration.
It showed that while 95 unleaded might increase by roughly 7c, 93 unleaded is set for a roughly 7c decline, and diesel set for a nearly 3c decline.
The Automobile Association of South Africa said the rand has somewhat recovered against the United States (US) dollar, which has offset slight rises in the international oil prices.
“In its turn, oil has retreated from the price spike arising from last month's Saudi oil refinery attacks, giving a more stable picture for the motorist," the AA said.
It said that the rand is trending stronger against the dollar the past few days which makes it possible for the fuel price to improve towards the end of the month.
For more, go to Business Insider South Africa.
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