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Fuel price hike likely in July - AA

2016-07-01 16:50

SA DRIVERS TO DIG DEEP: The AA warns that ongoing global-market volatility poses a risk of further fuel price hikes. Image: AFP

  Video

You could stress at the rising cost of fuel prices or you can breakdance your blues away like this funky dancer filmed at a fuel station.

Cape Town - Fuel prices are set to increase in July 2016 despite oil weakness and a stronger Rand in mid-June, reports the Automobile Association (AA).

The AA said: "In mid-June, petrol was set for a rise of up to 30 cents a litre, and diesel as much as 63 cents, but the picture has improved slightly in the past fortnight.  
 
"We now expect more moderate increases, with petrol up around 11 cents a litre, and diesel higher by approximately 43 cents."

Turbulent market

The Association said that despite a turbulent period on world markets in the wake of the United Kingdom's referendum on leaving the European Union, the average Rand/US dollar exchange rate used to calculate the fuel price strengthened slightly in the Rand's favour during June. 
 
This, coupled with an oil price which dropped sharply in the wake of the UK referendum result, had had a favourable effect on South African fuel prices. However, the AA warned that ongoing volatility posed a risk of further price hikes.

The AA said: "Both the basic fuel price and the daily exchange rate saw wild swings either way in June.
 
"We expect further volatility in the short to medium term as world markets continue to digest the consequences of the UK's referendum to leave Europe. This means that any additional political or economic shocks are likely to have a strong impact on South African fuel users," the Association concluded.


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