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Bad news for drivers - AA again predicts huge fuel price increase in December

Nov 28, 2017
Bad news for drivers - AA again predicts huge fuel price increase in December

The Automobile Association of South Africa on Tuesday again said that there is potential bad news for South African motorists as it is predicting a sharp fuel price hike in December.

Commenting on unaudited month-end fuel price data released by the Central Energy Fund (CEF), the AA said that the price of petrol could increase by 72 cents per litre while diesel could jump by 64 cents per litre in December.

The price of illuminating paraffin could rise by 76 cents per litre.

Early this month, the Association predicted that illuminating paraffin is projected to increase by 75 cents a litre‚ petrol is set for a 74-cent rise‚ and diesel 63 cents.

"Oil has continued the strong run we have seen throughout November and the trend remains upwards," the AA said in a statement.

"The Rand has followed a similar trend, weakening against the US dollar on average, although it has been surprisingly resilient in the days following South Africa's recent credit ratings downgrade."

The Association added; "South Africa's economic situation remains weak, and our view is still that further fuel price hikes can be expected during the remainder of 2017 and into the first quarter of 2018.

"There is always the temptation to spend more on non-essential items during the holiday period, but we advise motorists to be prudent and keep a cushion against higher motoring costs in the new year.”

The Department of Energy is expected to release the December fuel price adjustments later this week. The fuel price adjustment will kick in from 6 December.