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AA predicts hike of R1.73 per litre of petrol in July

This comes off the back of welcomed price decreases during the first few months of lockdown which saw the price hit records last seen many years ago.

Picture: EWN.

JOHANNESBURG - When it comes to the petrol price, what goes down, must come up. The Automobile Association of South Africa (AA) predicts a price hike of around R1.73 for petrol come 1 July.

This comes off the back of welcomed price decreases during the first few months of the coronavirus lockdown, which saw the price hit records last seen many years ago.

In May, petrol cost a low R12.02 per litre nationwide.

Now, the AA predicts petrol will go up by about R1.73 a litre, diesel by R1.74 and illuminating paraffin by R2.14 on Wednesday.

The association attributes this to the spike in oil prices over the last month, while the rand has not yet recovered to pre-coronavirus levels.

The inland price of 95 unleaded petrol increased from R12.22 to R13.40 a litre at the beginning of June. The latest increase predicted by the AA will see it jump to R15.13 on 1 July.

The inland wholesale price of diesel is set to rise from R11.40 to R13.14 a litre.

"We cannot overstate the effect that the rand's collapse is currently having on fuel users: if the rand had remained at its pre-COVID-19 levels, fuel users would likely be seeing a reduction in fuel prices in the order of 75 cents a litre next month."