Pain at the pumps expected over festive season | Fin24

Pain at the pumps expected over festive season

Nov 15 2017 12:58

Cape Town - The Automobile Association (AA) on Wednesday predicted a sharp jump in fuel prices at the end of November, with petrol projected to increase by 74 cents and diesel by 63 cents a litre. 

It expects illuminating paraffin to increase by 75 cents a litre.

The AA said its projection is based on data released by the Central Energy Fund, and was due to a weak rand and increases in global oil prices.

It cautioned that price increases may worsen before the end of the month.

"We cannot ignore signs that South Africa may face a further round of downgrades by ratings agencies, possibly even before December," it said. 
"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."

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