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Predicated October petrol price hike the highest ever

14.09.2018

The Automobile Association (AA) has advised motorists to brace for the biggest fuel price increase on record in October, due to the on-going faulting of the national currency and strengthening of international oil prices.

Commenting on unaudited mid-month data released by the Central Energy Fund on Thursday afternoon, the AA said it expects the price of petrol to inflate by R1.12 per a litre, diesel by a record R1.38 and illuminating paraffin by R1.17 a litre. The latest in a long line of consecutive and hefty fuel price hikes will see the price of 93 unleaded touching the R17 per litre mark, while diesel will retail for close to R16 per litre.

“It is also worth noting that a massive hike in the diesel price will be especially catastrophic for the agricultural sector which is already reeling from the prolonged drought. Extreme fuel price hikes could push marginal businesses, including farms, to financial breaking point, and have a massive negative impact of consumer pricing,” the AA said.

“While we earnestly hope the picture improves before month end, we once again call on the government to urgently address the policy and structural issues which have put fuel users in the front line of the Rand's weakness”.

By Friday (September 14th) morning, the Rand was trading at R14.75 to the US Dollar with Brent Crude Oil at $77.86 a barrel.

Article written by Autodealer
14.09.2018
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