Get ready for another fuel hike
Ongoing oil strength, with limited support from the exchange rate, has set the stage for further increases in the fuel price.
“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,” says the Automobile Association (AA).
The mid-month data predicts a rise of up to 27c a litre for petrol and 61c a litre for diesel.
Illuminating paraffin is also under pressure, with the data currently showing a 60c 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 AA says.
“Economic shocks, which weaken the exchange rate, could worsen the picture by month end.
“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 continue in the medium term,” the AA concludes.
