Consumers should prepare for massive increases in the price of fuel this month with the price of diesel, petrol and paraffin expected to increase significantly.
The Automobile Association (AA) says the petrol price increase will be the highest since July last year, while the increase in diesel prices is also expected to reach record highs.
Based on unaudited data from the Central Energy Fund, it is currently expected that the price of 95-octane petrol and 93-octane petrol will rise by R1.65 and R1.59 per liter respectively and the price of diesel by an astronomical R2 .85 per litre.
The price of paraffin is expected to increase by R2.80 per litre.
For inland motorists using 95-octane petrol, the increases will result in a price of between R22.83 and R24.48 per litre, and 93-octane petrol between R22.43 and R24.02 per litre. . The increase in the diesel price will mean a price of between R20.21 and R23.06 per litre.
“The expected increases are largely driven by international oil prices which have risen due to low demand and reduced output. Analysts expect Saudi Arabia, the world’s largest oil exporter, to extend its voluntary production cuts until October, keeping oil supplies tight and prices high,” says the AA.
According to the data, higher international oil prices contribute between 80% and 88% to the expected fuel increases, with the weaker exchange rate against the US dollar also having an effect.
According to the AA, motorists will not only feel it in their wallets when they make a trip to the petrol station, but also in goods and services which will also generally experience price increases.
“We once again encourage motorists to ensure that their vehicles are in good condition and operating optimally to use the correct amount of fuel. Avoiding heavy traffic and not overloading your vehicle will also help reduce fuel consumption.”
The Department of Mineral Resources and Energy will make the official announcement about the price changes on Monday. The new fuel prices come into effect on Wednesday.