Nothing to get pumped about – AA predicts price hikes for petrol, diesel in July
Level 4 lockdown regulations may see more and more South Africans stay home for the next two weeks but it’s not everyone that will be spared their travel costs.
The Automobile Association (AA) predicts users of all grades of fuel will be paying more in July.
Commenting on unaudited month-end fuel price data released by the Central Energy Fund, AA spokesperson Layton Beard says petrol looks set to increase by around 23 cents a litre, diesel by 38 cents and illuminating paraffin by 32 cents.
The Department of Mineral Resources and Energy is expected to announce the fuel price adjustments later this week.
"International petroleum prices have climbed throughout June. Even some marginal gains on the rand have not been enough to counter the rise,” says Beard.
“On average, the rand was positive against the US dollar during June, but the daily exchange rate has sagged alarmingly since mid-month, weakening from around R13.75 to the dollar to nearly R14.30.”
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Beard adds that households will feel the heat of the price hikes as they brace the harsh winter season.
"This increase is going to be very difficult for those who use paraffin for cooking, lighting, and especially heating as South Africa heads into the heart of winter," comments the AA.
"If the rand continues to slide with oil on an upward trajectory, this could bring further bad news for South Africa's economy," he warns.
Motorists are currently paying roughly R16,91 per litre of 93 octane petrol and roughly R17,13 for a litre of 95 octane petrol.
Diesel costs more than R14.60 per litre.
Listen to Beard below:
