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Motorists beware: Another SA fuel hike looms for July

2016-06-17 11:36

ANOTHER INCREASE: South African motorists should brace themselves for another increase in fuel prices. Image: iStock

  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 - Ongoing oil strength, with limited support from the exchange rate has set the stage for further increases in the fuel price. This is according to the Automobile Association (AA), which was commenting on unaudited mid-month data released by the Central Energy Fund (CEF).

The AA said: "International petroleum prices have appreciated less sharply in the month to date than was the case in the equivalent period in May, but the gains have nonetheless been significant.

"Meanwhile, the stronger Rand/US dollar exchange rate has not been enough to counter oil's rises, giving a risk of substantial fuel price hikes at the beginning of July."

Continuing rise

The mid-month data predicts a rise of up to 27 cents a litre for petrol and 61c/litre for diesel. Illuminating paraffin is also under pressure, with the data currently showing a 60c rise. 

The AA continued: "With the cold of winter having set in, people who use paraffin for heating and cooking are poised to experience a sharp jump in their energy costs, in addition to a rise in transport-related costs. 

INFOGRAPHIC: How SA's fuel price works

The AA noted: "Economic shocks which weaken the exchange rate could worsen the picture by month end.

"We advise South African motorists to re-consider their driving patterns and car sharing habits, in order to economise in the event that the current run of fuel price rises continues in the medium term," the AA concluded.


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