According to the Automobile Association (AA) another massive fuel price hike is on the horizon towards the end of May. This is after the unaudited mid-month fuel price data was released by the Central Energy Fund.
AA released a statement saying: “Last month’s fuel price account was closed earlier by the Department of Energy, resulting in the postponement of a substantial 50 cent-per-litre increase brought on by a weakening Rand and rising international oil prices at the end of April.”
Fuel price alert: South Africans are facing another #FuelPriceHike at the end of May – 74 cents a litre for petrol, 81 cents for diesel, and 78 cents for paraffin. How will this affect your living expenses? https://t.co/1y5oQlpOSO pic.twitter.com/sK1igNezjw
— AA South Africa (@AASouthAfrica) May 15, 2018
This means that South Africa started the month of May with a substantial fuel price deficit. “In the first half of May, the fuel picture has continued to worsen, with steep oil price rises and ongoing weakness of the Rand against the US dollar,” said AA.
AA also warned: “We are concerned about the impact of these price hikes on the economy. Rises in the fuel price increase the cost of doing business, and companies have few options but to pass these costs on to consumers. Worryingly, people who use illuminating paraffin for lighting, heating and cooking will suffer a further blow as the country heads into winter.”
According to the unaudited data, South African fuel users are currently facing increases of 74 cents a litre for petrol, 81 cents for diesel, and 78 cents for paraffin.
The deferred loss from last month will be included in this month’s adjustment, which is currently looking to be at an all-time high of R15 a litre.
The Department of Energy is yet to announce next month’s fuel prices but here are the predictions for the increase: