SA motorists can expect a petrol price hike next week
South Africa motorists can expect to pay more to fill up their tanks from next week, 4 May 2016, according to the Automobile Association (AA).
The association noted that steady appreciation in international petroleum prices during April has brushed aside gains in the Rand / US dollar exchange rate, setting the stage for more fuel price hikes in May.
The AA was commenting on unaudited month-end fuel price data released by the Central Energy Fund (CEF).
“The exchange rate showed a creditable strengthening during April,” the AA said. “With a flat oil price, consumers could have expected the price of fuel to drop by up to 29 cents a litre. But the recent increase in international product prices means that diesel will only drop by three to four cents a litre, with a nine cent drop on the cards for illuminating paraffin.”
However, a 42 cents-a-litre increase in the landed price of petrol considerably outstripped the exchange rate’s strength, meaning petrol users will have to fork out an extra 12 cents a litre.
“International petroleum prices have settled into a pattern of gains which are not always being overcome by recent Rand strength against the dollar,” the AA said.
“We forecast steady rises in the price of fuel in South Africa in the short to medium term, with the possibility of larger spikes if the rand comes under pressure, the AA said.
If the price increases by 12 cents, 93 octane petrol will cost R12.44 in Gauteng in May.
If diesel decreases by three or four cents, the wholesale price for diesel with 0,05% sulphur content will be R10.50/R10.51.
More on the petrol price
Here is the expected petrol price for May 2016
South Africa’s petrol price explained in one infographic
South Africa’s petrol price vs the world
What the SA petrol price could look like in 2020
Loading ...