South Africans should expect a fuel price increase of around 70 cents in December, said Reserve Bank Governor Lesetja Kganyago, ahead of the repo rates announcement on Thursday afternoon.
This would mark the fifth consecutive month of increases – and with 93 petrol rising from R12.63 in July, to an expected R14.53 in December.
95 Petrol has increased from R12.86 to R14.79 in the same time period.
Commenting on unaudited mid-month fuel price data released by the Central Energy Fund (CEF) last week, the Automobile Association (AA) said that the steep increase was due to a number of factors including the Rand’s one-year low to the dollar and heavy increases in international oil prices.
At the time it stated that motorists can expect to pay an increase of 74 cents for 95 petrol, and 75 cents for 93 petrol.
However it warned that the increase could increase, and continue into 2018 should South Africa face further credit ratings downgrades.
“Concerns over government’s fiscal discipline are likely to continue weighing heavily on the Rand, and if these factors combine with continued oil strength, South Africans will face heavy fuel price hikes for the remainder of 2017 and into early 2018,” it said.
The department of energy is expected to publish the official price increase next week.