Another petrol hike looms

Another consumer price hike looms

South Africans could be in for another fuel price hike shock.

The Automobile Association (AA) outlook for August predicts that fuel prices are likely to rise again at the end of the month. It said current statistics suggested “a price rise of 19 cents a litre for petrol‚ 13 cents for diesel‚ and 22 cents for illuminating paraffin”.

“International oil prices … did not contribute substantially to the price rises we are anticipating for next month‚” the AA said in a statement.

“The big news is again on the rand front. The local currency started this month with … several days of losses against the US dollar. However‚ the rand clawed back some of these losses… the fuel price increase may be lower than expected‚ but we cannot rule out further volatility.”

It said the recent spike in fuel prices was “cause for great concern as it is impacting on the lives of all South Africans‚ especially the poorest of the poor who rely on paraffin for heating‚ lighting and cooking.

“The increases have brought the issue of fuel costs firmly into the public domain and we believe now is a good opportunity for government to revisit the issue of the fuel levies with a view to reducing them significantly‚ especially as this is a cost it has control over.”

South Africans are still reeling from a price increase – already at a record high – at the beginning of this month.