Mas­sive May fuel hike loom­ing for mo­torists

Zululand Observer - Monday - - ZO NEWS - Tam­lyn Jolly

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.

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