ZULULANDERS could possibly face another fuel price increase in February.
After analysing data from the Central Energy Fund, the Automobile Association of South Africa(AA), which monitors fuel price trends and gives a report twice a month, said the news is not looking good.
Head of Public Affairs at the AA, Gary Ronald, explained the scenario.
‘After remaining pretty flat throughout December, the exchange rate has deteriorated from a South African perspective. With the Rand close to the R11 to the US dollar mark and even though international petroleum prices have declined over the same period, the drop may not be enough to offset the exchange rate.’
Zululand Chamber of Commerce and Industry ZCCI Executive Manager, Charmayne Pountney explained the impact of rising fuel costs, ‘The relentless pressure on business and the economy of rising fuel costs, labour instability and the falling value of the Rand impacts directly on the sustainability of small, medium and micro enterprises and results in job losses and increased levels of unemployment.’
The prediction could see an increase of between 28 and 32 cents per litre of petrol, with 15 cents a litre for diesel and 9 cents a litre for illuminating paraffin.
However, the increase is not set in stone and if the current rise in the exchange rate flattens out, the figures could improve.
