The Automobile Association (AA) is warning of steep fuel price hikes at the end of July. It says data from the Central Energy Fund reflects a risk of substantial fuel increase of 87 cents a litre, diesel 58 cents and illuminating paraffin 56 cents.
The AA says fuel prices were already trending higher before the widespread looting and unrest of the past few days. But now, the daily Rand/US dollar exchange rate has spiked from R14.35 to nearly R14.80 since 12 June.
The association is urging South Africans to limit all non-essential travel. This is as road transport comes under pressure due to fuel shortages.
It advises citizens to work remotely where possible.
#Fuel battered from all sides as road transit under strain by unrest, threat of fuel shortages as refinery shuts down, & risk of #FuelPriceHike at month-end. Limit non-essential travel to preserve current fuel stocks for essential & emergency services. ?https://t.co/E79QO6UYA5
— AA South Africa (@AASouthAfrica) July 15, 2021
The AA’s warning comes a day after it transpired that consumers will no longer be able to buy petrol and diesel in containers after government enacted the prohibition of such sales.
The Fuel Retailers Association has welcomed this decision, saying it has been flagging the sale of fuel in containers as a hazard.
Collapse of the supply of all goods as a result of lootings:
