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AA expects petrol and diesel price hikes in January 2017

Dec 29, 2016
AA expects petrol and diesel price hikes in January 2017

The Automobile Association (AA) of South Africa on Thursday said petrol price hikes are likely to greet motorists coming from the Christmas break in January 2017.

According to the association, unaudited month-end fuel price data released by the Central Energy Fund (CEF) showed substantial price increases for all types of fuel.

The Association said petrol is expected to increase by 51c/litre; diesel by around 40c and illuminating paraffin by 43c.

In December, the Department of Energy reduced the price of petrol by 20c/litre; diesel prices 31c/l and 32c/l depending on the sulphur content and illuminating paraffin by between 28 cents and 38 cents per litre.

The retail price for LP gas decreased by 17 cents per kilogram.

The AA said that the Rand has weakened against the US dollar since mid-December, while international petroleum prices have continued their upward march.

"However, despite the rand's recent weakness, it was comparatively strong in the first half of December, and the anticipated fuel price rise is entirely attributable to petroleum strength," it said, adding; "It is too early to know at what price level oil supply will match demand in the wake of the OPEC decision to cut production."

The AA still said that it expects 2017 to be a difficult year for South African motorists.