Another fuel hike predicted
JOBURG - Another fuel hike could be on the cards at the end of July.
The petrol price could rise by 26 cents per litre at the end of the month, the Automobile Association said.
This was deduced based on unaudited daily fuel price data released by the Central Energy Fund on 14 July.
“There has been a slow, but steady uptick in the Rand/US dollar exchange rate since the start of July,” it said in a statement.
“Over the same period, international petroleum prices have come off their mid-June highs, but not enough to offset the under-recovery in the petrol price.”
The outlook for the diesel was more favourable as current data predicted a slight price increase of about 3.5 cents per litre, the association said.
It added that illuminating paraffin was also fairly stable, with an increase of about 4.5 cents per litre expected.
“If international petroleum prices continue to trend downwards, the major factor will be the exchange rate.”
Earlier this month, the petrol price increased by 29 and 31 cents per litre, diesel spiked by 14 cents per litre, while the price of illuminating paraffin rose by 31 cents and LPG by 58 cents a kilogram.
However, the association noted that speedy resolutions to current labour disputes were important to contain further increases in the country’s exchange rate, which could negatively affect the fuel price.
The National Union of Metalworkers of SA in the metal and engineering sector was currently on strike.
