Hefty fuel hike looms

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File photo

Published Feb 20, 2014

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Durban -Motorists could expect another “substantial” fuel price hike next month, said the Automobile Association (AA) of South Africa.

Their prediction was based on a mid-month analysis of fuel price data.

Yesterday the AA said the exchange rate had eased to around R11.10 to the US dollarin the first half of the month, but international petroleum prices had increased.

“Motorists could be forking out substantially more for fuel,” the AA said.

Reggie Sibiya, chief executive of the Fuel Retailers Association, said current estimates suggested the petrol price would increase by 32 cents a litre and diesel by 26 cents a litre.

He could not say by how much illuminating paraffin would increase.

Earlier this month the fuel price reached a record high of R13.59 a litre for 95-octane unleaded petrol.

Economist Clive Coetzee said yesterday that next week’s budget speech would probably see fuel levies and taxes increased, but looking ahead after next month, he did not expect more significant fuel price hikes in the near future. - Mercury

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