Photo by: Bloomberg
Motorists can expect another massive fuel price hike at the beginning of June, the Automobile Association warned on Tuesday.
Commenting on unaudited mid-month fuel price data released by the Central Energy Fund, the AA said last month's fuel price account was closed earlier by the Department of Energy, resulting in the postponement of a substantial 50 cent-per-litre increase brought on by a weakening rand and rising international oil prices at the end of April.
"This means the country started the month (May) with a substantial fuel price deficit. In the first half of May, the fuel picture has continued to worsen, with steep oil price rises and ongoing weakness of the rand against the US dollar."
By 13:15 on Tuesday, the rand was trading 1.31% weaker than its previous close at R12.48/$, while Brent crude oil traded at $78.47/barrel.
South African fuel users are currently facing increases of 74c/l for petrol, 81c/l for diesel, and 78c/l for paraffin.
The AA said it was worried about the impact of the fuel price spikes on the economy.
"Rises in the fuel price increase the cost of doing business, and companies have few options but to pass these costs on to consumers.
"Worryingly, people who use illuminating paraffin for lighting, heating and cooking will suffer a further blow as the country heads into winter," the AA cautioned.
The price of petrol increased by 49c/l and 69c/l in March and April respectively, bringing the per litre price for petrol at the coast to R14.21 and R14.38 for 93 and 95 unleaded respectively and R14.38 for 95 LRP.
Inland, motorists are currently paying R14.72 and R14.97 for 93 and 95 unleaded respectively and R14.72 for 95 LRP.