Projected fuel price increase in the pipeline
Illuminating paraffin tops the list with a projected increase of 75 cents a litre, petrol is set for a 74 cent rise, and diesel 63 cents.
MOTORISTS could face a steep increase in fuel prices at the end of November, warned the Automobile Association (AA).
This information was retrieved from the unaudited mid-month fuel price data released by the Central Energy Fund (CEF), which is forecasting a sharp jump in fuel prices at the end of the month.
AA explained motorists cannot expect much respite from a weakening domestic picture.
“The Rand is testing one-year lows against the US dollar. In addition, there have been heavy increases in international oil prices,” said the AA in a report.
Illuminating paraffin tops the list with a projected increase of 75 cents a litre, petrol is set for a 74-cent rise, and diesel 63 cents. The AA cautions that the picture may worsen before the end of the month.
Also read: Another blow for motorists as fuel prices increase again
The Association stood firmly that they could not ignore the signs that South Africa may face a further round of downgrades by ratings agencies, possibly even before December.
“Concerns over government’s fiscal discipline are likely to continue weighing heavily on the Rand, and if these factors combine with continued oil strength, South Africans will face heavy fuel price hikes for the remainder of 2017 and into early 2018,” concluded the AA.
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