The Automobile Association (AA) has expressed concern about yet another steep rise in fuel prices that take effect from midnight on Tuesday.
Petrol prices will be hiked by 81 cents a litre, while diesel will go up by at least 72 and a half cents a litre.
Last month petrol prices were hiked by R1, 21 cents. Paraffin prices are also going up at midnight tonight.
The hikes are due to a weaker rand and higher oil prices.
AA’s Layton Beard says the prices are concerning because salaries are not keeping pace with the increases.
“40% increases for both grades of petrol, you’re looking at around 44% increases for both grades of diesel, but I think more concerning, we’re looking for 70% plus increases for illuminating paraffin. That’s a real worry, people who are using this fuel, are the poorest of the poor in many cases, and they’re using it for heating, lighting and cooking and salaries we know are not keeping pace with these increases.”
Concerns over latest petrol prices: Chriselda Lewis:
The latest fuel Price increases are largely due to the weaker rand exchange rate and a spike in international oil price.
Oil Price has been in an upward spiral jumping from 82 dollars to 83 dollars per barrel.
The Department of Energy says that there is a strong global demand for oil products than the market can supply. And the taxes and levies have impacted the petrol price margin adjustments.
The increase in energy Price is also expected to contribute to higher inflationary.
The latest fuel price comes ahead of the festive season when motorists will be travelling to various holiday destinations.
South African petrol prices surged beyond the R20 per litre mark, for the first time in history. There are many reasons why fuel prices are rising at such an unprecedented rate, but the prime culprits are strong international oil prices, a weak rand, and high taxes.
Taxi commuters unhappy with yet another increase: