Petrol prices set to soar to record levels
THE Automobile Association (AA) has warned of a potential ‘monster fuel price hike’ come month-end, which is set to be the biggest fuel price hike in South African history.
The prediction is based on unaudited data from the Central Energy Fund, and comes amid a spike in international oil prices and a huge swing in the Rand/ US Dollar exchange rate.
‘Based on the current data, petrol users will be paying R1.12 more per litre, with illuminating paraffin costing R1.17 more,’ said the AA.
‘But it is diesel users who will be hit hardest, with a possible price hike of R1.38 per litre, pushing diesel to within a whisker of R16/litre.’
These predictions would see motorists paying 20% more at the pumps than in January.
The AA said that such an increase, especially in diesel prices, would have a ‘catastrophic effect’ on the agricultural industry, which is already reeling after the prolonged drought.
It says extreme fuel price hikes could push marginal businesses, including farms, to financial breaking point, and have a massive negative impact on consumer pricing.
‘While we earnestly hope the picture improves before month end, we once again call on the government to urgently address the policy and structural issues which have put fuel users in the front line of the Rand’s weakness.’
Zululand motorists have expressed shock over the potential impending fuel price hike, many of whom say they would consider car pooling.
Sibusiso Nzuza, SANTACO (SA National Taxi Association) King Cetshwayo Regional Chairperson, said he is waiting for a mandate from the provincial office before he can make a statement on how this potential fuel price increase would affect taxi users.
Such a price hike would have a major impact on not just motorists, but also taxi and bus users, many of whom travel long distances between home and work.
Potential record fuel hike imminent