Expect another fuel price hike in July

2018-06-15 14:37
Those were the days. This is a June 1977 cash slip for petrol - 48,7 litres of petrol cost R12.38. It’s now June 2018 and you can’t get one litre at that price today. I put in 40.30 litres of 95 two days ago in Bloemfontein and it cost R650.05 at R16.13 a litre. Eieeesh! Now think of this in terms of a truck filling up its 600 litre tank with diesel at today’s price. It’s become scary!

Fuel prices look set for another jump going into July. This is according to the Automobile Association (AA) which was commenting on unaudited mid-month fuel data released by the Central Energy Fund (CEF).

 “Since the start of June, the Rand has steadily weakened against the US dollar with the average cost per dollar having climbed from around the R12.50 mark to nearly R13.00. Fortunately, international oil prices retreated over the same period and have had a very small impact on the figures,” says the AA. So it’s a case of oil being down but the weak Rand hammering the price.

The current data forecasts a rise of around 30 cents a litre for diesel, 32 cents a litre for petrol and 22 cents for illuminating paraffin.

“Almost all of the increase is due to the Rand’s weakness and the picture would have looked much worse if international oil prices had not come down over the past two weeks. However, with the volatility of oil markets, an increase in the oil price cannot be ruled out in the short to medium term and we once again urge all to practice economical driving techniques,” says the AA.

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