Now may be the best time to invest in a bicycle or a new pair of walking shoes, as fuel prices are set to skyrocket at the end of this month.
A spike in international oil prices and a huge swing in the Rand/US dollar exchange rate have combined to predict a knockout blow at the pumps at the end of September.
According to the mid-month unaudited data from the Central Energy Fund (CEF) the biggest fuel price hike in South Africa’s history is coming.
Based on the current data, petrol users will be paying R1.12 more per litre, with illuminating paraffin costing R1.17 more.
Fuel Outlook: Expect a steep price increase in October – over R1 per litre for both petrol & diesel. We urge the government to address this matter, putting fuel users in the front line of the Rand's weakness https://t.co/Awv4PcBXGT #LetsTalkFuelPrice #FuelPriceIncrease pic.twitter.com/TVWiuCpKWX
— AA South Africa (@AASouthAfrica) September 13, 2018
In a statement issued by the Automobile Association, they said diesel users will be hit hardest, with a possible price hike of R1.38 per litre, pushing diesel to within a whisker of R16 per litre.
Should this increase materialise, it will push the price of 93 unleaded octane fuel inland close to R17 a litre, off a January price of R14.20 – a total increase of around 20 percent, year-to-date.
— Jeff Siepman (@JeffSiepman) September 9, 2018
The Association also points out that a massive hike in the diesel price will be especially catastrophic for the agricultural sector which is already reeling from the prolonged drought.
It says that extreme fuel price hikes could push marginal businesses, including farms, to financial breaking point, and have a massive negative impact of consumer pricing.
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