Cash strapped motorists to pay more for fuel in July
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Cape Town - Over-stretched motorists can prepare to dig deeper into their pockets as petrol is predicted to increase by around 23 cents a litre, diesel by 38 cents and illuminating paraffin by 32 cents in July.
Commenting on unaudited month-end fuel price data released by the Central Energy Fund, the Automobile Association (AA) said: "International petroleum prices have climbed throughout June.
Even some marginal gains on the Rand have not been enough to counter the rise.
On average, the Rand was positive against the US dollar during June, but the daily exchange rate has sagged alarmingly since mid-month, weakening from around R13.75 to the dollar to nearly R14.30," said the AA.
The increase is set to hit the hardest those using paraffin for cooking, lighting, and especially heating as South Africa heads into the heart of winter, according to the organisation.
It also noted that the Rand's weakening trend raised concerns about the fuel price trajectory in July.
"If the Rand continues to slide with oil on an upward trajectory, this could bring further bad news for South Africa's economy," said the AA.