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The Automobile Association is warning of massive fuel price hikes in July as international crude oil prices continue to advance.
The AA was commenting on Friday on unaudited month-end fuel price data released by the Central Energy Fund.
"The rebound in international oil prices has been as remarkable as their fall earlier in the year. The basic fuel price for petrol and diesel in South Africa jumped from around R3 a litre on 1 May to nearly R6 a litre by 25 June,” said spokesperson, Layton Beard.
He said the AA was forecasting that petrol would be increasing by around R1.73 a litre, diesel by R1.74, and illuminating paraffin by a massive R2.14 when fuel prices are adjusted next week.
"This will be an especially huge blow to citizens who use paraffin for cooking, lighting, and especially heating during Winter," Beard said.
The Association said that the Rand had gained around 34 cents against the US dollar during June, but that the local currency was still approximately R2.50 weaker to the dollar than before the COVID-19 crisis hit and the country's sovereign debt rating was downgraded.
"We cannot overstate the effect that the Rand's collapse is currently having on fuel users: if the Rand had remained at its pre-COVID-19 levels, fuel users would likely be seeing a reduction in fuel prices in the order of 75 cents a litre next month," he concluded.
