Energy

SA motorists face an unprecedented petrol price hike next week

Staff Writer

 ·27 Sep 2018

Motorists are facing unprecedented price increases in October, the Automobile Association (AA) says, commenting on unaudited month-end fuel price data released by the Central Energy Fund (CEF).

“These increases are catastrophic for road users,” the AA said.

“They are the biggest in South African history. The major culprit is South Africa’s chaotic economic policy which has left us defenceless against upticks in international oil prices.”

With the rand and oil contributing almost equally to the rises, petrol is expected to be up by R1.01 per litre, with diesel spiking by a massive R1.24.

Illuminating paraffin users are also in for a shock hike with the price predicted to increase by a whopping R1.05, the association said.

“Excluding months where fuel taxes were hiked, this will be the largest single fuel price increase South Africa has ever experienced,” it said.

The association said that the impact inflicted on the economy by such increases may put pressure on president Cyril Ramaphosa’s recently-announced stimulus package.

“We estimate this increase could extract a further R2.5 billion a month in transport costs from an economy that is already on the ropes,” the AA said.

“The cost of doing business will go up and consumer disposable income will shrink. We don’t believe the economy could grow meaningfully under such conditions.”

The Department of Energy is expected to announce price increases on Friday (28 September).

Read: Government’s petrol price intervention could mean even higher prices in October and beyond: Dawie Roodt