Massive June fuel hike, says AA
Petrol prices are set to increase drastically this week
FUEL prices are set to jump to record highs this month, offering motorists no reprieve from ever increasing prices at the pumps.
This according to the Automobile Association (AA) whose experts said stronger international oil prices and a deficit carried over from April were the reasons for the increase, which is set to take effect from Wednesday.
‘International oil prices have come under strong pressure, accounting for two-thirds of the price rise,’ said the AA.
‘The Department of Energy’s monthly close-out happened early, owing to the public holidays in April, after which the Rand lost almost 60c against the US Dollar in a matter of a day.
ALSO READ: Massive fuel price increase looming for South African motorists
‘This meant a substantial fuel price rice was a near certainty from the start of May.’
The AA expects petrol to rise by up to 85c/litre, diesel by 87c, and illuminating paraffin by 82c.
The association said it is particularly concerned about the increase in paraffin as all price hikes continue to hit the poorest the hardest.
‘It also notes this increase comes at a time when many people will rely on paraffin for heating in the winter months.’
‘There appears to be some possibility of lower oil prices in the medium term with OPEC countries discussing a production increase.
‘However, this will rely on a stable Rand for fuel users to feel the benefit, which is not certain at this stage.
‘We advise fuel users to expect further hikes and continue to economise in all ways possible.’
HAVE YOUR SAY
Like our Facebook page and follow us on Twitter.
For news straight to your phone invite us:
WhatsApp – 072 069 4169
Instagram – zululand_observer
