Expected fuel increase to push petrol to R24/litre

Motorists should brace themselves for more fuel price increases next week, as petrol is expected to rise by R1.65 cents per litre.

This as the wholesale price of diesel is expected to increase by a whopping R2.85/litre.

According to the Automobile Association of South Africa (AA), the anticipated hike will push the price of a litre of both ULP95 and ULP93 to around R24 – the highest since July last year.

The AA was commenting on unaudited data from the Central Energy Fund (CEF).

“In the case of diesel, the hikes will push the suggested wholesale cost of this fuel from its current R20.21 per litre to R23.06 per litre, the highest it has been since December last year.

“Illuminating paraffin prices are also slated to increase significantly, by as much as R2.80per litre, pushing the cost of this fuel to R17.43 per litre inland and R16.50 per litre at the coast,” said AA spokesperson Layton Beard.

He said higher international oil prices are contributing between 80% and 88% to the expected increases, along with the weaker rand/US dollar exchange rate.

“Motorists will certainly feel the pinch in terms of higher prices at the pumps, but consumers across the board can expect higher prices to all goods and services because of these hikes.

“In this environment, we reiterate our advice to motorists that they should keep their vehicles in good mechanical condition and their tyres inflated according to manufacturer’s specifications to ensure optimal fuel usage.

“Avoiding heavy traffic, not overloading the vehicle, and minimising driving where possible are other measures to decrease fuel consumption,” said Beard.

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