AA warns of fuel price hike next month
Motorists will once again have to dig deeper into their pockets as the price of petrol is expected to increase again next month according to data released by the Central Energy Fund.
NATIONAL – Motorists will once again have to dig deeper into their pockets as the price of petrol is expected to increase again next month according to data released by the Central Energy Fund.
The price of petrol is likely to increase by between 43 cents and 46 cents a litre in July, while diesel and illuminating paraffin are likely to increase by only 6 cents per litre, said the Automobile Association (AA) on Thursday.
The AA warned the weakening exchange rate could result in even higher increases:
“If this trend continues and is not offset by reductions in international petroleum prices, fuel prices will begin testing their previous record highs before the end of the year,” it said.
“The average rand/dollar exchange rate has weakened considerably since the end of May. The rand has lost about 40 cents against the dollar, and this has contributed almost half of the increase which is forecast for the petrol price.”
The AA said diesel prices have meanwhile moderated, but there was a steep spike in the petrol price in the second week of June.
“The petrol price has since come off this high, but not enough to prevent a considerable price increase at the pumps,” it said.
