Brace for another fuel price hike

South Africans should brace for another petrol price increase‚ the Automobile Association warned on Monday.

“Further substantial fuel price hikes are lined up for the end of October‚ based on the unaudited mid-month fuel price data released by the Central Energy Fund.

“Petrol prices are currently set for a 40 cents-a-litre increase‚ while diesel and illuminating paraffin could spike by 70 cents and 65 cents respectively‚” the AA said.

The organisation said international oil prices remained persistently high and current tensions involving Saudi Arabia‚ one of the world’s biggest oil producers‚ could place more pressure on fuel prices.

There is‚ however‚ some good news.

“More welcome news is that the rand is working in South Africans’ favour‚ and the recent firming of our currency against the US dollar has taken some of the bite out of oil’s rally‚” the AA said in a statement.

“The country cannot continue to be hammered by large fuel price hikes without severe economic knock-on effects.”

The latest possible increase comes after increases of 99c for unleaded 93 petrol‚ R1 for unleaded 95‚ and R1.24 for diesel.

Illuminating paraffin increased by R1.04 and liquefied petroleum gas by R1.79.

The AA said the effect of the latest likely increases on bus and taxi operations could lead to fare hikes that could exceed commuters’ ability to pay.

“We again call on the government to prioritise economic policies which inspire investor confidence‚” the AA said.