Ricochet News

Another fuel price hike predicated at the end of January

Jan 16, 2017
Another fuel price hike predicated at the end of January

South African motorists can expect another fuel price hike at the end of January, the Automobile Association (AA) warned on Monday. The association was commenting on unaudited mid-month fuel price data released by the Central Energy Fund (CEF).

"The Rand / US dollar exchange rate has firmed slightly since the start of January 2017," the AA described, adding that international oil prices have, however, surged ahead by a far greater margin.

The AA is predicting petrol to jump by 44 cents; diesel by 37c, and illuminating paraffin by 31c.

In December, the Department of Energy announced that a litre of petrol 93 ULP and LRP will rise by 50c a litre, while a litre of 95 ULP and LRP will increase by 48c in January 2017. Meanwhile, a litre of Diesel (0.05% Sulphur) increased by 39c, while Diesel (0.005% Sulphur) increased by 37c. The Wholesale price of Illuminating Paraffin rose by 43c and the price of SMNRP of Illuminating Paraffin will increase by 58c.

The Maximum Retail Price of LPGas roase by 106.00c/kg.

"There is always the hope that the spike in international oil prices will not persist, but that seems unlikely," it said.

"South Africans should already be thinking of trimming any unnecessary expenses to accommodate a series of fuel price hikes which seem likely in the medium term."