The Automobile Association of South Africa has predicted substantial fuel price hikes at the end of October.
The AA said on Monday that unaudited mid-month fuel price data released by the Central Energy Fund point to a 40c a litre increase in the price of petrol while diesel and paraffin could spike by 70c and 65c a litre respectively.
“International oil prices remain stubbornly high and it is possible that current tensions involving Saudi Arabia, one of the world’s biggest oil producers, could place more pressure on fuel prices,” said the AA.
“More welcome news is that the Rand is working in South African’s favour, and the recent firming of our currency against the US dollar has taken some of the bite out of oil’s rally”.
The AA warned that the country cannot continue to be hammered by massive fuel price hikes without severe economic knock-on effects, warning that “the effect on bus and taxi operations could lead to fare hikes which exceed commuters’ ability to pay”.
“We again call on the government to prioritise economic policies which inspire investor confidence.
A stronger and more stable Rand is the country’s only defence against the vagaries of the international oil price.”