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Motorists to feel next month's fuel price adjustments

The Automobile Association of South Africa expects motorists to be hit hard at the pumps in May.

Petroleum employees demand 9% increase
AFP
The AA has been commenting on unaudited mid-month data released by the Central Energy Fund.

The organisation released a statement earlier, saying it expects the petrol price to increase by around 41 cents a litre.

It says diesel could cost 48 cents a litre more, while paraffin is likely to go up by around 38 cents a litre.

NOW READ: Petrol price increase kicks in next Wednesday

The AA says petroleum prices were relatively flat in the first week of April, but spiked sharply as a result of the tensions in Syria.

"The Middle East lies near many of the world's key oil producers, and petroleum prices have historically been sensitive to instability in the region," the statement read.

South Africans have endured a torrid time of late when it comes to increases in some unavoidable costs, like VAT, fuel and tolls.

VAT increased from 14 to 15 percent last month, while April's fuel price adjustments included increases to the Fuel and Road Accident Fund levies, as outlined in the 2018 Budget speech.

The roads agency, SANRAL also increased tariffs on all toll routes last week.

Economist Dawie Roodt is also expecting the fuel price to increase next month.

He says any increases in the cost of fuel will stretch the consumers' Rand even further.

"That will add to the normal distribution cost of goods in South Africa, adding to price increases as well as  inflation," he said.


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