On Wednesday expect a petrol price hike of about R1.20

The Automobile Association (AA) has estimated that on Wednesday the price of petrol will increase by about R1.20 per litre.

The AA expects the diesel price to be up to 25 cents per litre more expensive while illuminating paraffin will cost about 44 cents per litre more.

“The global lockdowns under COVID-19 saw fuel demand plummet. The resulting oversupply left storage bunkers full, with the extraordinary outcome that oil prices in the USA briefly dipped below zero,” the AA said. “This is not unexpected, and South Africans should remember that the fuel price is currently around R4 per litre lower than it was before the COVID-19 crisis hit. Fortunately, the rand has strengthened during May, which has helped insulate the country from some of the rise.”

The AA also noted that there is diesel rationing in South Africa at the moment, but the supply of the fuel is expected to normalise by the end of May.

“We advise motorists to be pragmatic and anticipate fuel prices slowly returning to their previous levels over the medium to long term. It would be prudent to budget accordingly,” the AA said.

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