Home South African Brace for big fuel price increases

Brace for big fuel price increases

166

A big petrol price increase is expected to come into effect on February 7, putting a strain on household budgets as residents continue to recover from festive season spending and stretched budgets.

South African motorists seen rushing to fill up their cars before midnight. File picture: Motshwari Mofokeng/African News Agency (ANA)

A BIG petrol price increase is expected to come into effect on February 7, putting a strain on household budgets as residents continue to recover from festive season spending and stretched budgets.

The Automobile Association (AA) said on Monday that unaudited fuel data from the Central Energy Fund showed that 93ULP and 95ULP petrol were expected to climb by between 64c/l and 66c/l respectively, while diesel was expected to increase by around 63c/l.

Illuminating paraffin was expected to be 47c/l more expensive.

“The movement in international oil prices is contributing a significant percentage to the increases, while the weaker average rand to US dollar exchange is adding an impactful but smaller margin to the expected increases,” said the AA.

Based on the numbers, a litre of 95ULP inland will climb from its current level of R22.49l/ to R23.15/l, while the price of 93ULP inland will increase from R22.17/l to R22.81/l.

“The increases to the prices of petrol will have a negative impact on household budgets at this early part of the year while most consumers are still recovering from festive season spending and stretched budgets.

“The cumulative effect on personal finances will be a further reduction of disposable income which will be exacerbated by increases to goods and services which must recoup the higher fuel input costs.

“We again urge consumers to monitor their fuel usage carefully, and to budget according to the new fuel prices which come into effect on Wednesday.

“Ensuring vehicles are well maintained and in good mechanical condition, carefully planning routes, and avoiding heavy traffic, if possible, are some ways in which motorists can ensure better fuel consumption,” said the AA.

Previous articleAfcon: We rate SA players’ quarter-final performance
Next articleAnglo American may consider deeper cost cuts due to weak markets