Petrol price to hit record highs in May


The Automobile Association (AA) says motorists are set to reel under massive fuel hikes next month.

“Fuel prices in May will increase by around 49 cents a litre as of May 2‚” the AA said on Thursday‚ commenting on unaudited month-end fuel price data released by the Central Energy Fund (CEF).

The diesel increase will be 60 cents‚ and 52 cents for illuminating paraffin.

Based on these figures‚ a litre of 93 octane unleaded petrol (inland) – which currently costs R14.23 a litre – will now cost R14.72. This is 23 cents higher than the previous record high of R14.49 in December last year‚ the AA said.

“These increases are significant and are attributable to a weakening rand against the US dollar‚ and increasing international petroleum prices.”

The organisation expressed its concern about the increases‚ especially those to illuminating paraffin. “Users of this fuel will be hit particularly hard as we head into the colder months where many households use this fuel for lighting‚ heating and cooking.”

It cautioned that the depreciation of the rand over the past few days would impact on future fuel prices.

“Going into May‚ there is already an under-recover of 46 cents a litre. If the rand doesn’t appreciate significantly against the US dollar‚ and if international prices don’t decrease‚ this will mean another increase into June.

“The predicted price increases must also be seen against the backdrop of the substantial increases to fuel prices in April‚ which saw the addition of 52 cents a litre being added for the general fuel and Road Accident Fund levies.”

– TimesLIVE

Source: TMG Digital.

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