The Automobile Association has warned South African motorists to brace for yet another significant fuel price hike in December, thanks to “sharp movements” in international petroleum prices and a weakening rand.
“Oil has continued the strong run we have seen throughout November and the trend remains upwards,” the AA said in a statement, commenting on unaudited month-end fuel price data released by the Central Energy Fund.
“The rand has followed a similar trend, weakening against the US dollar on average, although it has been surprisingly resilient in the days following South Africa’s recent credit ratings downgrade,” the Association added.
The AA predicted that illuminating paraffin would rise by around 76 cents a litre, diesel by 64 cents, and petrol by 72 cents.
“South Africa’s economic situation remains weak, and our view is still that further fuel price hikes can be expected during the remainder of 2017 and into the first quarter of 2018,” the AA warned.
“There is always the temptation to spend more on non-essential items during the holiday period, but we advise motorists to be prudent and keep a cushion against higher motoring costs in the new year,” it added.
