The petrol price increase on Wednesday has left most South Africans out of pocket, the question of ‘is there going to be another petrol price hike’ is on everyone’s mind. With the volatile rand, and the ongoing crisis in fuel rich countries, it is difficult to ascertain whether another rise is on the cards.
We reached out to Layton Beard, spokesperson for the Automobile Association, to answer this question.
“The rand remains volatile and may strengthen against the US dollar before the end of next week,” said Beard. “It’s really too early to say whether there’ll be another increase at the end of June going into July.”
With that being said, he is of the opinion that an increase in fuel prices come July is likely to happen.
It is important to note that the situation can change quickly, he added. “We normally do a mid-month fuel outlook and at that time we have a clearer picture of what we’re in for come the end of the month.”
This comes after much speculation that there will be yet another fuel price increase on top of the one experienced my motorists across the country on Wednesday.
The price of 95 Petrol shot up to R15.82 on Wednesday, an increase of over 82 cents, making it more expensive than ever for motorists to fill up their tanks. Motorists now have no other option than to work carefully and cut down on other expenses to cope with the hike.
Beard advices motorists to prioritise when they use their vehicles, such as driving only during off-peak traffic times. Another option is to make use of public transport that is readily available, such as a bus.
Already, the Johannesburg taxi industry has begun raising its fares, and taxi operators in other parts of the country may soon follow suit.
The South African Government has advised motorists to drive less, and published “simple fuel-saving tips” on its Facebook page.
The fuel price hike will also have a negative impact on an already struggling economy. As businesses pass the fuel costs to the consumer‚ such as instating higher prices for services like bus services, locals will have less money to spend on food and basic needs.