Brace yourselves for petrol price hikes
In what is certainly a dampener to the start of 2017, the Automobile Association (AA) says South Africans are likely to face a series of fuel price hikes this year. Unaudited month-end fuel price data released by the Central Energy Fund (CEF) showed substantial price increases for all types of fuel. According to the AA, petrol is expected to increase by 51 cents a litre, diesel by around 40 cents and illuminating paraffin by 43 cents.
The AA said:
"The rand has weakened against the US dollar since mid-December, while international petroleum prices have continued their upward march. "However, despite the rand's recent weakness, it was comparatively strong in the first half of December, and the anticipated fuel price rise is entirely attributable to petroleum strength."
The AA added that it is still "too early to know at what price level oil supply will match demand in the wake of the OPEC decision to cut production", but said it expects 2017 to be a difficult year for motorists.