Massive May fuel hike looming for motorists
MOTORISTS are expected to pay record high fuel prices from May, owing to an unprecedented weakening of the Rand against the US Dollar and sharp international oil price increases.
This according to the Automobile Association (AA), commenting on unaudited month-end fuel price data released by the Central Energy Fund.
Petrol is set to increase by 92 cents a litre, diesel by R1.07 and illuminating paraffin by R1.06.
‘The outlook at mid-month, of around a 50c/litre increase, appeared manageable, but the sharp deterioration in the position of the Rand over the past week has been almost without precedent,’ said the AA.
The previous highest price for fuel was in December when petrol cost R14.76 a litre.
The expected increase will move the cost of a litre of 93 octane fuel (inland) to R15.15/ litre.
This time last year the cost was R13.57 a litre.
This represents a R1.58 or 11.64% increase year-on-year.
‘This increase is going to hit users of illuminating paraffin particularly hard as we head into the colder months where many households use this fuel for lighting, heating and cooking,’ said the AA.
These expected increases come on the back of the substantial increases to fuel prices in April, which saw the amount of 52c/litre being added to the general fuel and Road Accident Fund levies.
‘Motorists should be aware that further oil strength and Rand weakness could produce further increases in the shortto medium-term,’ said the AA.