Big petrol price hike for SA motorists

The petrol price could rise by 26 cents per litre at the end of the month, the Automobile Association said on Tuesday.

“There has been a slow, but steady uptick in the Rand/US dollar exchange rate since the start of July,” it said in a statement.

“Over the same period, international petroleum prices have come off their mid-June highs, but not enough to offset the under-recovery in the petrol price.”

Earlier this month, the petrol price increased by 29 cents.

The outlook for the Diesel price was more favourable. Current data predicted a slight price increase of around 3.5 cents per litre, the AA said.

“If international petroleum prices continue to trend downwards, the major factor will be the exchange rate.”

The organisation said speedy resolutions to current labour disputes were important as they could negatively affect the fuel price.

The National Union of Metalworkers of SA (Numsa) in the metal and engineering sector is currently on strike.

Union members downed tools on July 1, initially demanding a salary increase of 12 percent, dropped from their pre-strike demand of 15 percent, a R1000 housing allowance, and a total ban on labour brokers.

The union announced on Sunday it had lowered its wage increase demand to 10 percent.

The Steel and Engineering Industries Federation of Southern Africa announced on Tuesday it had withdrawn its final wage offer.

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Big petrol price hike for SA motorists