Motorists to reel under massive fuel hike

Fuel prices will increase in May by around 49 cents a litre as of 2 May, and not 92 cents as earlier predicted by the Automobile Association (AA). The error occurred due to an earlier closing off, of the reporting period for fuel increases by the Department of Energy.

An increase of 49 cents a litre for petrol, 60 cents for diesel, and 52 cents for illuminating paraffin is on the horizon.

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.

“Even with the revised data, these increases are significant and are attributable to a weakening Rand against the US dollar and increasing international petroleum prices. We remain concerned 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,” says the AA.

The revised 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.

Extracts of AA press release: 26 April 2018