News24 Wire
Wire Service
1 minute read
29 Jul 2020
12:07 pm

Petrol price likely to rise, AA says

News24 Wire

The Automobile Association says the price of paraffin is set to rise by about 43 cents.

Picture: Karen Sandison / African News Agency (ANA)

The Automobile Association says fuel prices are set to increase in August despite the strengthening rand.

The association was commenting on unaudited month-end fuel price data released by the Central Energy Fund.

“As matters currently stand, petrol is likely to increase by between nine and 16 cents a litre, diesel by up to 48 cents, and illuminating paraffin by 43 cents,” it said.

The AA said that, while oil traded in a fairly tight range throughout July, there was a “substantial climb” at the beginning of the month.

This not good news for consumers, who are already hard hit by job losses or lower salaries, nor is it for businesses.

B4SA said South African businesses were already in distress and it now expects about 1.5 million further job losses by the end of the year.

“Against our latest modelling scenarios, we expect that it will take a minimum of two years for the South African economy to recover to pre-Covid-19 levels, keeping in mind that South Africa’s economy was already weak at the start of 2020,” said the head of B4SA’s economic working group, Martin Kingston.

B4SA also said it expected the national Covid-19 infection rate to peak during August 2020, while daily mortalities will peak by late-August or early September.

For more news your way, download The Citizen’s app for iOS and Android.