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Prepare for 'unprecedented fuel price increases in October' says AA

Sep 27, 2018
Prepare for 'unprecedented fuel price increases in October' says AA

Motorists and other fuel users are facing unprecedented fuel price increases in October, the Automobile Association of South Africa warned on Thursday.

"According to the unaudited month-end fuel price data released by the Central Energy Fund (CEF). These increases are catastrophic for South African road users," the AA explained.

"They are the biggest in South African history.

"The major culprit is South Africa's chaotic economic policy, which has left us defenceless against upticks in international oil prices.

"With the Rand and oil contributing almost equally to the rises, petrol is expected to be up by R1.01 per litre, with diesel spiking by a massive R1.24. Illuminating paraffin users are also in for a shock hike with the price predicted to increase by a whopping R1.05."

Unprecedented fuel price increases in October

The AA added that excluding months where fuel taxes were hiked, this will be the largest single fuel price increase South Africa has ever experienced.

"The impact inflicted on the economy by such increases may put pressure on President Ramaphosa's recently-announced stimulus package," the association said.

"We estimate this increase could extract a further R2.5bn a month in transport costs from an economy that is already on the ropes. The cost of doing business will go up and consumer disposable income will shrink.

"We don't believe the economy could grow meaningfully under such conditions."

At the beginning of September, the Minister of Energy, Jeff Radebe, on Monday announced that fuel prices would remain unchanged for the month of September except the 4.9c/l increase in the retail margin of petrol to cater for the annual salary increase for forecourt attendants, cashiers and other administration staff.

This was after months of fuel hikes. At the beginning of August, the Department of Energy announced a slight increase in petrol prices and a drop in diesel prices.

Deputy President, David Mabuza, told Parliamnet in August that government was exploring ways to minimise the impact of high fuel prices.

This followed a similar announcement by Minister Radebe his department was intensifying efforts to cap and bring down the escalating cost of fuel

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