Ricochet News

AA predicts a sharp fuel price jump in December

Nov 15, 2017
AA predicts a sharp fuel price jump in December

If predictions by the Automobile Association (AA) of South Africa are anything to go by, motorists are in for a bleak Christmas as fuel prices are expected to increase for the third consecutive month at the beginning of December.

According to AA, unaudited mid-month fuel price data released by the Central Energy Fund (CEF) is hinting to a sharp jump in fuel prices at the end of November.

The AA blamed a weak Rand as well as volatile internationl oil prices.

 

"The Rand is testing one-year lows against the US dollar‚" the Association added.

"In addition‚ there have been heavy increases in international oil prices."

The AA said that illuminating paraffin is projected to increase by 75 cents a litre‚ petrol is set for a 74-cent rise‚ and diesel 63 cents.

It still said that the picture may worsen before the end of November.

"We cannot ignore signs that South Africa may face a further round of downgrades by ratings agencies‚ possibly even before December‚" the Association said.

"Concerns over government's fiscal discipline are likely to continue weighing heavily on the Rand‚ and if these factors combine with continued oil strength‚ South Africans will face heavy fuel price hikes for the remainder of 2017 and into early 2018."