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All grades of fuel set to increase in July


Motorists are in for another shock at the pumps next month with all grades of fuel set to increase, petrol by around 23 cents a litre, diesel by 38 cents and illuminating paraffin by 32 cents.

Commenting on unaudited month-end fuel price data released by the Central Energy Fund, the Automobile Association said the increases could be blamed on international petroleum prices climbing throughout June.

The AA said marginal gains on the Rand against the US dollar had not been enough to counter the rise.

It added that the daily exchange rate had sagged alarmingly since mid-month, weakening from around R13.75 to the dollar to nearly R14.30.

The AA said this latest increase would be very difficult for those who rely on paraffin as South Africa heads into the heart of winter.

The Association concluded that if the Rand continues to slide with oil on an upward trajectory, this could bring further bad news for South Africa's economy.