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'Hefty' fuel price hike for South Africa - AA

2017-08-15 13:02

Image: iStock

Johannesburg - Stronger international fuel prices and a gradually weakening Rand are signalling a hefty jump in the price of all fuel types at the end of August, reports the Automobile Association, commenting on unaudited mid-month fuel price data released by the Central Energy Fund (CEF).

The association says: "The Rand has weakened an average of 20 cents against the US dollar since the start of August. Meanwhile, international fuel product prices have remained on the higher plateau they reached towards the end of July. This means all fuel types are likely to experience substantial price increases at month end."

Petrol to increase by 63c/litre

Given this, the AA’s mid-month fuel outlook prediction is that petrol is expected to climb by a hefty 63 cents a litre, diesel by 57 cents and illuminating paraffin by 58 cents. The AA says the increase in illuminating paraffin in particular will have a strong negative effect on households which rely on this fuel for cooking, lighting and heating.

What do you think of fuel-price fluctuations in SA? What can industry and government do to combat higher fuel prices? How has the fuel price affected your life? Email us

The AA says: "The Rand's trend over the past two weeks has been towards further weakness against the US dollar, and international fuel prices have traded in a fairly narrow band, meaning we do not expect the picture to improve by month-end. 
"Fuel users should definitely expect to pay more for fuel from the start of September."

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