Most motorists will have to tighten their belts as they can expect a 42 cents a litre increase in the price of petrol.
The Automobile Association (AA), which was commenting on unaudited month-end fuel price data released by the Central Energy Fund, announced that the steady appreciation in international petroleum prices during April had brushed aside gains in the rand/US dollar exchange rate, setting the stage for more fuel price hikes in May.
AA spokesperson, Layton Beard, said with a flat oil price, consumers could have expected the price of fuel to drop by up to 29 cents a litre, but the recent increase in international product prices meant that diesel would only drop by three to four cents a litre, with a nine-cent drop on the cards for illuminating paraffin.
“However, a 42 cents a litre increase in the landed price of petrol, considerably outstripped the exchange rate’s strength, meaning petrol users will have to fork out an extra 12 cents a litre,” he said. “International petroleum prices have settled into a pattern of gains which are not always being overcome by the recent rand’s strength against the dollar.
“We forecast steady rises in the price of fuel in South Africa in the short- to medium-term, with the possibility of larger spikes if the rand comes under pressure.”
