SA motorists could be in for ‘fuel price shocker’
Petrol could rise by almost R2/litre, diesel by R1.62/litre and paraffin by over R2/litre
South African motorists could be in for fuel ‘price shocks never seen before’ should the government end the temporary reduction of the General Fuel Levy (GFL).
This is according to the Automobile Association (AA), commenting on unaudited mid-month data from the Central Energy Fund (CEF), which points to massive fuel price increases across the board for June.
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‘In late March, government reduced the GFL by R1.50 for April and May which brought temporary relief to consumers,’ said the AA.
‘The big question now is how government plans to deal with rising fuel costs from June onwards, especially given that baseline prices are forecast to move significantly upwards in June.
‘Based on current, unaudited data from the CEF, petrol is expected to increase by between R1.93 and R1.97 a litre, diesel is expected to increase by between R1.60 and R1.62 a litre, and illuminating paraffin is expected to climb by a whopping R2.14 a litre.’
Explaining that these predicted increases are based on mid-month data which could change by month end, the AA outlined the main factors affecting South African fuel prices.
‘The two main factors which influence local fuel prices are the rand/US dollar exchange rate and international oil prices.
‘The rand is trading weaker against the dollar and oil prices are also still high.
‘Given this, the outlook for June’s fuel prices does not look positive,’ said the AA.
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