The price of petrol is expected to increase at the end of July as a result of violent and disruptive looting action that caused the rand/dollar exchange rates to rise from R14.35 to nearly R14.80 since June 12.
According to the Automobile Association (AA), fuel prices were already on the incline before the widespread looting but this has rapidly increased now as South Africa imports large amounts of fuel, which will inevitably cost more in “Rand terms.”
The AA further mentioned that the mid-month data indicates that petrol is set for an increase of 87 cents a litre, 58 cents for diesel and illuminating paraffin stands at 56 cents.
“The Association notes that while the supply of fuel will not push the prices of fuels higher, the weakening Rand as a result of the riots will play a major role as the exchange rate is a key indicator for the local fuel price,” the AA said.
The AA has also advised motorists to avoid unnecessary journeys and to buy no more fuel than necessary in order to preserve current stocks for essential and emergency services.
“We also advise citizens to work remotely where possible, and our plea to [businesses] is to accommodate the difficulties their staff may face if mass transit is affected by fuel shortages,” the AA reiterated.
Meanwhile, the Department of Mineral Resources and Energy (DMRE) indicated on Thursday, July 15, that South Africans will now be prohibited from purchasing petrol in portable containers. This decision came after looting action continued in parts of the country.
According to Minister Gwede Mantashe, there is enough fuel and South Africans should be discouraged from panic buying and hoarding.
“The DMRE assures the nation that while there are challenges with regards to the movement of petroleum products to some parts of the country, there is sufficient product and the government is working to secure the movement of all petroleum products,” Mantashe said.
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