More bad news in store for motorists

17:42 (GMT+2) Mon, 15 Apr 2019

Strong international fuel prices could see motorists face another petrol price hike at the end of April.

The Automobile Association of South Africa said in a statement that current data suggests that petrol may increase by 56 cents a litre while diesel is showing a reduction of five cents and illuminating paraffin down by a cent.

“If this increase materialises, this will be the third straight increase to fuel prices this year,” said the AA which was commenting on unaudited mid-month fuel price data.

"The international product price of diesel climbed somewhat in the first half of April, while petrol has made a substantial jump”.

The AA said diesel's smaller increase is likely due to variations in international refining capacity, as well as the approaching end of the Northern Hemisphere winter when demand for diesel fuels for use in peaking power plants and as a heating fuel diminishes."

It said the Rand has appreciated quite strongly against the US dollar since the end of March, with the daily exchange rate used for fuel price calculations rising from over R14.60 to the dollar on 31 March to under R14 currently.

"The ground gained by the local currency has cushioned some of the blow, with diesel currently showing a slight decrease. But petrol users are in for a shock," said the Association.


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