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).<\/p>\n
“These increases are catastrophic for road users,” the AA said.<\/p>\n
“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.”<\/p>\n
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.<\/p>\n
Illuminating paraffin users are also in for a shock hike with the price predicted to increase by a whopping R1.05, the association said.<\/p>\n
“Excluding months where fuel taxes were hiked, this will be the largest single fuel price increase South Africa has ever experienced,” it said.<\/p>\n
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.<\/p>\n
“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.<\/p>\n
“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.”<\/p>\n
| Fuel<\/th>\n | September official<\/th>\n | October expected<\/th>\n<\/tr>\n |
|---|---|---|
| 95 Petrol<\/td>\n | R16.08<\/td>\n | R17.09 (+101)<\/td>\n<\/tr>\n |
| 93 Petrol<\/td>\n | R15.87<\/td>\n | R16.87 (+100)<\/td>\n<\/tr>\n |
| 0.05% Diesel (wholesale)<\/td>\n | R14.41<\/td>\n | R15.65 (+124)<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n The Department of Energy is expected to announce price increases on Friday (28 September).<\/p>\n \n |