Record high petrol price hike set for June
Strong international oil prices and a deficit carried over from April will force commuters to pay more for fuel prices in June.
FOLLOWING yet another fuel price increase in May, the Automobile Association (AA) has warned motorists to expect another price hike in June.
The AA said fuel prices will reach record heights next month due to two factors.
“The Rand traded in a fairly narrow band against the US dollar throughout May. However, international oil prices have come under strong pressure, accounting for two-thirds of the price rise which will come into effect next Wednesday, 6 June,” the AA said.
“The Department of Energy’s monthly close-out happened early due to the public holidays in April, after which the Rand lost almost 60 cents against the US dollar in a matter of a day. This meant a substantial fuel price rise was a near certainty from the start of May,” the AA explains.
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A large deficit carried over from April has also affected the price of fuel, the organisation said.
Petrol is expected to rise by up to 85 cents a litre, diesel by 87 cents, and illuminating paraffin by 82 cents.
The AA expressed particular concern over the price of parafin, as the increase was expected to hit consumers, at a time when many would rely on paraffin for heating in the winter months.
“This increase comes following several fuel hikes and increases to other commodities and services in the past few months which have hit the poorest the hardest.”
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