Middle East Conflict Sends South African Fuel Prices Soaring

South Africa is facing record petrol and diesel prices in October due to the conflict in the Middle East, which has put oil markets on edge. Brent crude has traded near the $110 per barrel mark after breaching the $100 barrier earlier in the week.

The Central Energy Fund predicts potential increases of R2.02 for 93 Unleaded petrol and R2.14 for 95 Unleaded, while diesel is expected to rise by between R1.71 for 500ppm and R2.05 for 50ppm.

Consumer sentiment will likely remain highly subdued in the third quarter as fuel prices continue to rise. Investec economist Lara Hodes said that September's significant fuel price increases have put further strain on household budgets, while projected October increases will erode purchasing power.