Bad news for South African motorists, if the predicted increases materialise, fuel prices will have gone up by more than one rand in the space of just two months. According to the Automobile Association (AA), fuel prices will hit motorists hard at the end of April.
Commenting on the unaudited mid-month data released by the Central Energy Fund, the AA said that although petroleum prices were largely flat in the first week of April, spikes caused by tensions in Syria have led to the sharp increase local motorists will feel.
“The Middle East lies near many of the world’s key oil producers,” the AA said, “and petroleum prices have historically been sensitive to instability in the region.”
The rand weakened slightly against the US dollar during the first half of April. The spike in international petroleum prices also accounts for the rise in fuel prices predicted by the mid-month data.
According to current data, petrol will increase by 41 cents per litre, and diesel by 48 cents. Illuminating paraffin is also predicted to rise by 38 cents per liter. “In all of these increases, the movement in the exchange rate accounts for just four cents of the rise,” the association said.
The predicted May increase comes on the back of a 72 cents increase in April. If the predicted increases materialise this means fuel prices in South Africa will have reached an all-time high in a very short timespan.
Prolonged instability in the Middle East could drive international petroleum prices up even higher.
The predicted May fuel increase will impact your wallet as follows:
95 Petrol – R14.89
93 Petrol – R14.64
0.05% Diesel (Wholesale) – R13.23
Picture: Pixabay
