Another massive price hike for petrol and diesel at month-end
Another steep price hike for petrol and diesel could possibly await motorists at the end of the month.
Ongoing oil strength, with limited support from the exchange rate, has set the stage for further increases in the fuel price.
“The stronger Rand/US dollar exchange rate has not been enough to counter oil’s rises, giving a risk of substantial fuel price hikes at the beginning of July,” says the Automobile Association (AA).
The mid-month data predicts a rise of up to 27c a litre for petrol and 61c a litre for diesel.
Illuminating paraffin is also under pressure, with the data currently showing a 60c rise.
“With the cold of winter having set in, people who use paraffin for heating and cooking are poised to experience a sharp jump in their energy costs, in addition to a rise in transport-related costs,” the AA says.
“Economic shocks which weaken the exchange rate could worsen the picture by month end.
“We advise South African motorists to re-consider their driving patterns and car-sharing habits, in order to economise in the event that the current run of fuel price rises continue in the medium term,” the AA concludes.
