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The Automobile Association said motorists can expect a “major upward shift in fuel prices” with projected fuel prices jumping the R24/l mark next month.
The AA said mid-month fuel data from the Central Energy Fund points to petrol edging “close to the R25/l record high seen last year”.
The Association said based on the current data, 95 octane petrol is set to increase by R1.35/l, 93 octane is expected to climb by R1.31/l, diesel by between R1.43/l and R1.59/l and illuminating paraffin by 96c/l.
“International product prices are playing a significant role in the expected fuel increases while movement in the Rand/US Dollar exchange rate is contributing marginally to the under-recovery of the basic fuel prices.
“We remain concerned about these expected increases which will undoubtedly put more pressure on already stretched consumers,” the AA said.
It reiterated its view that a review of the fuel price was necessary to establish if any components within the current pricing model could be revised to mitigate against rising costs.
The AA said this was especially the case for diesel “as higher input costs will be recovered through higher prices at the till”.
With the budget speech coming up next Wednesday, the Association called on the Minister of Finance to strongly consider not increasing the General Fuel and Road Accident Fund levies in his budget speech.
“Any relief – even in the form of non-increases – would be welcome to a consumer base already reeling from economic hardship”.
