Fuel price shock: Another increase for December
Unaudited mid-month fuel price data released by the CEF predict tough times for South African motorists and commuters alike.
THE Central Energy Fund (CEF) has forecast a sharp jump in fuel prices at the end of November according to the Automobile Association of South Africa (AA).
The AA said that motorists cannot expect much respite from a weakening domestic picture.
Read also: Petrol price could rise in November-AA
“The Rand is testing one-year lows against the US dollar,” the Association said. “In addition, there have been heavy increases in international oil prices.”
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 cautioned that the picture may worsen before the end of the month.
Read also:Petrol price goes up again this November
“We cannot ignore signs that South Africa may face a further round of downgrades by ratings agencies, possibly even before December,” the Association commented.
“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,” the AA concluded.
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