Ricochet News

AA predicts another fuel price hike in June

May 15, 2018
AA predicts another fuel price hike in June

If a prediction by the Automobile Association (AA) of South Africa on Tuesday is anything to go by, then motorists are in for another fuel price hike in June.

While commenting on unaudited mid-month fuel price data released by the Central Energy Fund, the AA said last month's fuel price account was closed earlier by the Department of Energy, resulting in the postponement of a substantial 50 cent-per-litre increase brought on by a weakening rand and rising international oil prices at the end of April.

It added that this "means the country started the month (May) with a substantial fuel price deficit. In the first half of May, the fuel picture has continued to worsen, with steep oil price rises and ongoing weakness of the rand against the US dollar".

So, motorists after facing a 74c/l increase for petrol, 81c/l increase for diesel, and 78c/l increase for paraffin.

The AA warned that these fuel increases would impact the economy.

"Rises in the fuel price increases the cost of doing business, and companies have few options but to pass these costs on to consumers," it described.

"Worryingly, people who use illuminating paraffin for lighting, heating and cooking will suffer a further blow as the country heads into winter."