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Brace for another petrol price hike

Cape Town - Current data predicts a petrol price hike of between 17 and 18 cents per litre, while diesel and illuminating paraffin are set for drops of 11 to 12c/l.

This is according to the Automobile Association (AA), which was commenting on unaudited mid-month data released by the Central Energy Fund.

"We are seeing a gradual, but sustained return of strength to petroleum prices," the AA said.

It explained that on the international market, diesel and petrol prices have risen since late February.

"The appreciation of the rand against the US dollar has gone some way to offset this, meaning that diesel and illuminating paraffin are heading for reduced prices, while petrol is set to climb," it added.

The AA said rising international oil prices continue to battle with gains in the rand/US dollar exchange rate.

"Both the exchange rate and international oil prices continue to be volatile, and the month-end picture could be quite different from the current one."

In April the cost of a litre of 93 unleaded petrol inland went up to R12.32 per litre and R11.94/l at the coast. For 95 unleaded, motorists fork out R12.62/l and R12.14/l at the reef and coast respectively.

Diesel rose by 98c/l, illuminating paraffin by 76c/l and liquefied petroleum gas (LPG) by R1.10 per kilogram.

Last month's price hike also included a 30c/l increase in the general fuel levy, as well as adjustments in transportation costs following the National Energy Regulator of South Africa’s approved pipeline tariff increase and the road transportation tariff hike obtained from the Road Freight Association.

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