ACCORDING to the Automobile Association (AA), we are in for a bumpy ride this festive season as the fuel price outlook for December predicts an increase, with petrol prices set to go up by almost R1/litre.
Commenting on unaudited month-end fuel price data released by the Central Energy Fund, the AA said sharp movements in international petroleum prices coupled with a weakening Rand are reasons for the gloomy outlook.
‘Oil has continued the strong run we saw throughout November and the trend remains upwards,’ said the AA.
‘The Rand has followed a similar trend, weakening against the US Dollar on average, although it was surprisingly resilient in the days following South Africa’s recent credit ratings downgrade.’
The association said it expects illuminating paraffin to rise by about 76c/litre, diesel by 64c/litre and petrol by 72c/litre.
‘South Africa’s economic situation remains weak, and our view is that further fuel price hikes can be expected during the remainder of 2017 and into the first quarter of 2018.
‘There is always the temptation to spend more on non-essential items during the holiday period, but we advise motorists to be prudent and keep a cushion against higher motoring costs in the new year.’
The new prices are expected to take effect from Wednesday.
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