South Africa’s roller-coaster fuel price is set to reach another high in June, according to the latest prediction by the Automobile Association (AA).
“We are rapidly nearing the end of May and the fuel outlook is looking bleak. Government needs to address this issue sooner rather than later; consumers are anxious about what lies ahead, and government should allay these concerns by indicating as early as possible what steps it will be taking to mitigate against rising fuel costs”.
Commenting on the first unaudited data report by the Central Energy Fund on Monday (16 May), the AA said it expects the price of petrol to rise by between R1.93 and R1.97 a litre, diesel by between R1.60 and R1.62 a litre, and illuminating paraffin by a record R2.14 a litre.
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“The two main factors which influence local fuel prices are the R/US dollar exchange rate and international oil prices. The Rand is currently trading weaker against the dollar and oil prices are also still high. Given this, the outlook for June’s fuel prices does not look positive,” the AA said.
A final prediction is expected near month before the implementation of the new tariffs on Wednesday, 8 June.