Another fuel hike may be on cards, AA warns

MOTORISTS could find themselves having to fork out more at the pumps yet again next month, the Automobile Association (AA) has warned.

According to the AA, the fuel prices are likely to rise again at the end of July going into August.

The AA was commenting on unaudited mid-month fuel price data released by the Central Energy Fund. It noted that the petrol price could increase to R16.21 a litre inland, and R15.72 on the coast.

“International oil prices see-sawed during the first half of July, but remained within a fairly narrow band and did not contribute substantially to the price rises we are anticipating for next month,” the AA said yesterday.

“The big news is again on the rand front. The local currency started this month with a deficit, thanks to several days of losses against the US dollar at the end of June.

“However, the rand clawed back some of these losses during a period of unusually flat trading in the first half of June,” the AA said. The rand was trading at R13.20/$ yesterday morning. The AA said the current data suggested a price rise of 19c per litre for petrol, 13c for diesel and 22c for illuminating paraffin.

“If the prevailing rand and fuel price trends persist for the rest of July, the fuel price increase may be lower than expected, but we cannot rule out the possibility of further volatility,” said the AA.

It said the recent spike in fuel prices was cause for great concern as it impacted on the lives of all South Africans, especially the poorest of the poor – who relied 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,” said the AA.

At the beginning of July, the inland price for a litre of 95 octane unleaded petrol went up to R16.02. The coastal price went up to R15.43.

Both grades of petrol, 93 and 95 , increased by 26c and 23c a litre respectively at the time.