By: Natasha Archary
Mid-month data from the central energy fund shows another steep petrol price hike is on the cards in April.
Layton Beard Automobile Association (AA) South Africa spokesperson said an increase is inevitable and will affect every consumer, not just motorists.
Based on the data an estimated hike of around R 3.00/litre for diesel and R 2.50/litre for petrol is expected.
With winter just around the corner, the increase would also affect the cost of illuminating paraffin which is set to go up by almost R 2.50/litre.
Predictions from the central energy fund shows a slight improvement in the under-recovery rate which could mean the increase is a few cents lower.
The latest petrol price increase will have a negative effect on consumers with the price of basic necessities rising as a result.
According to the Bureau of Economic Research (BER) any increase is going to be a blow to motorists.
“The crude oil one month future closed the week more than 4% lower – its second weekly loss. With the rand exchange rate remaining relatively firm, this means that the fuel price under-recovery (indicative of the likely price hike in April) came down to below R2/litre for petrol, even though it remains above R2.5/l for diesel.”
Despite the performance of the Rand against other currencies, the Russia-Ukraine war is the biggest factor in the cost of fuel.
Prices are expected to continue rising until the invasion of Russia is resolved with the coming months being crucial to the cost of Brent Crude Oil.
The latest increase will take the cost of petrol to a whopping R23/litre. This after the March increase took the price up to R21/litre.
In other news: Afriforum wins interdict to block SA’s R50 million donation to Cuba



