Johannesburg - South African motorists are facing the biggest fuel price increases in the country’s history by far.
This according to the Automobile Association, in light of the Central Energy Fund’s unaudited mid-month data, which the association has been monitoring since 1 September.
AA Spokesman Layton beard said: “A spike in international oil prices and a huge swing in the Rand/US dollar exchange rate have combined to predict a knockout blow at the pumps at the end of September.
"Based on the current data, we’ll be paying R1.12 a litre more for petrol, and R1.17 a litre more for illuminating paraffin. But it is diesel users who will be hit hardest, with a possible price hike of R1.38 a litre, pushing it close to R16 a litre.”
To put that in perspective: In January 2018 the price of 93 unleaded petrol inland was R14.20 a litre; by the end of September we are looking at an inland price close to R17 a litre - an increase of about 20 percent since the beginning of this year.
'Catastrophic for the for the agricultural sector'
If this level of under-recovery continues until the end of September, we are looking at paying R16.99 a litre for 93 octane petrol and R17.00 a litre for 95 octane petrol inland from 3 October, while the wholesale price of diesel will go up to R15.79.
Beard pointed out that such a huge ride in the price of diesel will be catastrophic for the for the agricultural sector, which is already reeling from the prolonged drought, and could push marginal businesses, especially farms, to breaking point.
And of course the price of everything that has to be transported, especially food, will go up accordingly, so even if you don’t drive, your wallet is in for a shock.
The association once again called on government to address as a matter of urgency the policy and structural issues that put fuel users in the front line of the Rand's weakness.