JOHANNESBURG -The Automobile Association (AA) are warning of a possible fuel price increase in November.
According to the association’s data, they expect a petrol price rise of 99 cents a litre. Diesel and illuminating paraffin may increase by R1,42 cents a litre.
In October, diesel and paraffin users saw an increase in prices, which the DMRE similarly attributed to higher oil prices and the rand-dollar exchange rate. The price of petrol dropped slightly.
If the data is correct it would be the largest hike for diesel and illuminating paraffin in South African history.
The AA says their predictions are based on the Dollar price and oil price. They believe that R20 a litre for petrol could be the reality before the end of the year.
The AA does not regulate or adjust fuel prices in SA, but it publishes two fuel price outlooks per month.
Fuel prices are officially calculated and adjusted on the first Wednesday of each month by the Department of Mineral Resources and Energy.
But based on its interpretation of recent exchange rate and commodities data, the AA said it was predicting “fuel price hikes of catastrophic proportions” at the end of October.
“The current picture is showing petrol up by 99 cents a litre, and diesel and illuminating paraffin higher by a whopping R1.42 a litre. This will push 95 ULP inland above R19/l (close to R19.30/l), and R17/l for diesel,” the AA said.
“Taking this potential increase into account, the price of a litre of fuel inland (95 ULP) will have increased from R14.86/l in January to R19.30/l in November – a 30% increase over 11 months.”
It added that the hikes in diesel and illuminating paraffin – if they came to pass as the AA predicted – would be “the largest in South African history”. It added, however, that its prediction was still based on half a month’s data.