AA: Petrol price set to rise by 40c at end of October
The AA predicts another petrol price hike on the horizon.
JOHANNESBURG - While South Africa is still reeling from the massive petrol and diesel price hike that kicked in at the beginning of October, which saw prices shooting up by up to R1.24c, the Automobile Association (AA) predicts another one on the horizon.
"International oil prices remain stubbornly high and it is possible that current tensions involving Saudi Arabia, one of the world's biggest oil producers, could place more pressure on fuel prices. More welcome news is that the Rand is working in South African's favour, and the recent firming of our currency against the US dollar has taken some of the bite out of oil's rally," the AA says.
However, road users still need to brace themselves with petrol prices currently set for a 40c per litre increase, while diesel and illuminating paraffin could spike by 70c and 65c respectively.
"The predicted increase to the price of petrol must, for the moment, be seen against the backdrop of the Department of Energy’s proposal to set a maximum price for the sale of 93 octane ULP and LRP fuels. Should this happen, it will allow fuel retailers to set their own prices below the maximum amount indicated by the government, and may, depending on the margins, ease the burden on users of the two identified fuels."
The AA adds the next price hike is likely to affect minibus taxi and bus fares, putting a heavier burden on commuters who are already struggling to cover the costs of public transport on a regular basis.