SA to brace for further fuel price hikes

Motorists are again being advised to brace themselves, as yet another fuel price hike is on the cards, according to the Automobile Association (AA).

“Ongoing oil strength, with limited support from the exchange rate, has set for further increases in the fuel price,” stated the AA, following on unaudited data by the Central Energy Fund (CEF).

Following on steep back to back increases since the beginning of the year, given the current national economic climate, the AA are adamant that more increases are in store.

"International petroleum prices have appreciated less sharply in the month to date than was the case in the equivalent period in May, but the gains have nonetheless been significant.

“Meanwhile, the stronger Rand / US dollar exchange rate has not been enough to counter oil's rises, giving a risk of substantial fuel price hikes at the beginning of July,” the AA added.

The analysed CEF data, predicts a 27 cents per litre rise for petrol and a diesel rise of 61 cents a litre, while illuminating paraffin currently showing a 60 cent rise.

“With the cold of winter having set in, people who use paraffin for heating and cooking are poised to experience a sharp jump in their energy costs, in addition to a rise in transport-related costs," the Association remarked.

“On June 1 the pump price for all grades of petrol went up by 52c/l and in May motorists had to fork out a whopping 88c and 86c respectively for 95 ULP and LRP and 93 ULP and LRP. The price of petrol has already gone up by 152c since March this year,” reported News24.

The AA further warned that should the exchange rate be weakened by any additional economic shocks by month end, the projection could worsen.

"We advise South African motorists to re-consider their driving patterns and car sharing habits, in order to economise in the event that the current run of fuel price rises continues in the medium term," the AA stated.