AA warns of steep fuel price hike in June

The association forecasts a hike of more than R1 per litre for all grades of fuel.

In March this year, government reduced the fuel levy by R1.50 for April and May, which has brought temporary relief to consumers.

But the AA says consumers could face now further pressure as the relief ends in May.

"Based on current, unaudited data from the CEF, petrol is expected to increase by between R1.93 and R1.97 a litre, diesel is expected to increase by between R1.60 and R1.62 a litre, and illuminating paraffin is expected to climb by a whopping R2.14 a litre," the AA said on Monday.

Although the final data may vary between now and when the adjustment is finally made, the AA says the picture is not looking rosy.

“The two main factors which influence local fuel prices are the R/US dollar exchange rate and international oil prices. The Rand is currently trading weaker against the dollar and oil prices are also still high. Given this, the outlook for June’s fuel prices does not look positive."

“We are rapidly nearing the end of May and the fuel outlook is looking bleak. Government needs to address this issue sooner rather than later; consumers are anxious about what lies ahead, and government should allay these concerns by indicating as early as possible what steps it will be taking to mitigate against rising fuel costs."

ALSO READ: