Another fuel price hike is coming

Fuel price increases have the greatest effect on motorists, public transport users, non-electrified households, and farmers.

The Automobile Association (AA) forsees another fuel price hike in July, while motorists are still coming to terms with the third consecutive increase that happened this month, and which saw the petrol price go up by 82 cents per litre, diesel by 87 cents a litre and paraffin by R1.09 a litre.

The AA said in a statement:

“Since the start of June, the rand has steadily weakened against the US dollar, with the average cost per dollar having climbed from around the R12.50 mark to nearly R13.00. Fortunately, international oil prices retreated over the same period, and have had a very small impact on the figures.”

Since April, the petrol price has increased by as much as 15 percent – up more than R2 per litre in three months.

A weaker exchange rate and the rising international Brent Crude oil price were among the reasons cited for June’s fuel increase.