Huge fuel price hikes will hit motorists

THE petrol price is to increase by 86c/l for 93 octane and 88c/l for 95 octane from midnight tonight.

The Department of Energy said yesterday the strengthening of the rand against the US dollar during the review period had cushioned the price increases by about 10c/l.

The price of diesel will increase between 95.7c/l and 97.7c/l‚ while paraffin will cost 76c/l more and liquid petroleum gas R1.10/kg more.

The Automobile Association (AA) said late last month that although the rand-dollar exchange rate had firmed in the rand’s favour over the past few weeks‚ the strengthening of international petroleum product increases had outstripped the rand’s gains.

The association said the fuel price was subject to considerable risk.

“If oil prices continue to climb‚ motorists can expect substantial fuel price increases‚” the AA said.

“Any deterioration in the exchange rate will add more pressure.

“A combination of sustained oil strength and a ratings downgrade before year end would also be very negative for motorists.”