Motorists will have to dig deeper into their pockets as fuel prices are set to go up this month.
Fuel prices are set to increase from Wednesday, which Automobile Association (AA) says will be record hikes.
According to the association, commenting on unaudited data from the Central Energy Fund, the price of petrol is expected to increase between R1.59 per litre for ULP93 and R1.65 per litre for ULP95.
Diesel is expected to go up by a whopping R2.85 per litre, whilst Illuminating paraffin is expected to increase significantly by as much as R2.80 per litre.
“Considering these potential increases, the price of a litre of ULP95 inland will rise from R22.83 to R24.48/l while the price of ULP93 will increase from R22.43/l to R24.02/l. Both these prices are in line with prices last seen in August last year but not at the record highs seen in July 2022.”
The AA’s spokesperson, Layton Beard, says the hikes to petrol prices will be the highest since July last 2022.
“The expected increases are largely being driven by higher international oil prices, which have risen on the back of slow demand and decreased output. The Reuters news agency, for instance, yesterday reported that analysts expect that Saudi Arabia, the world’s biggest oil exporter, would extend its voluntary output cut into October, keeping oil supply tight and prices high.”
The associations says according to the CEF’s data, higher international oil prices are contributing between 80% and 88% to the expected increases with the weaker Rand/US Dollar exchange rate contributing the rest.
“While the rand has weakened on average against the greenback (US dollar) in August, it’s not a major contributor to the expected increases – that falls squarely on rising international oil prices,” Beard says.
Beard also warned that consumers across the board can expect higher prices to all goods and services because of these hikes.
The association has also given some tips to motorists to decrease fuel consumption:
Written by: Nonhlanhla Harris