DECLINING fuel prices of the initial lockdown period are rapidly becoming a distant memory as petrol, diesel and paraffin prices look set for a massive increase.

This, while South Africans are forced to tighten their belts during these times of salary freezes and pay cuts.

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Commenting on unaudited mid-month fuel price data released by the Central Energy Fund, the Automobile Association (AA) outlined the probable month-end increases.

Based on current figures, petrol is set to climb by up to R1.59/l, diesel by R1.48/l, and illuminating paraffin by a whopping R1.94/l.

Setting the scene for such price hikes is oil and its steady march back towards its previous levels.

‘The basic fuel price used in South Africa has jumped by 8% since 1 June, with higher peaks, as international oil prices claw back some of the massive declines of the past four months,’ said the AA.

‘With world demand expected to continue to increase, South Africans must likewise expect the fuel price to gradually edge back towards pre-Covid-19 levels.’

‘South Africans are also benefiting from increasing rand strength, with the local currency having made up 60c against the US dollar since the start of June.

‘In fact, the rand’s firmer performance in June has offset the fuel price increases by around 36/l to date.’

However, the currency is far weaker than before and continuing relative weakness would place South African fuel users at an increasing disadvantage as oil prices rise.

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