More fuel price hikes due in July, AA says
If the rand continues to slide with oil on an upward trajectory, it could bring further bad news for SA’s economy, the AA adds
All grades of fuel will be more expensive in July when the department of mineral resources and energy officially adjusts the prices of fuels later this week.
This is according to the Automobile Association (AA), which was commenting on unaudited month-end fuel price data released by the Central Energy Fund.
The association forecasts that petrol looks set to increase about 23 c/l, diesel by 38 c/l and illuminating paraffin 32 c/l.
“International petroleum prices have climbed throughout June. Even some marginal gains on the rand have not been enough to counter the rise. On average, the rand was positive against the US dollar during June, but the daily exchange rate has sagged alarmingly since mid-month, weakening from about R13.75 to the dollar to nearly R14.30,” the AA said.
“This increase is going to be very difficult for those who use paraffin for cooking, lighting, and especially heating as SA heads into the heart of winter,” comments the AA.
“If the rand continues to slide with oil on an upward trajectory, this could bring further bad news for SA’s economy,” the AA concludes.
In June, there was a 10c/l cut in the petrol price and a 21c hike in the price of diesel.