Third consecutive fuel price hike on the cards

There's yet another substantial fuel price increase on the horizon.

The Automobile Association predicts a price hike of 35 cents a litre for petrol, 33 cents for diesel and 29 cents for illuminating paraffin. 

Its forecast is based on the unaudited mid-month fuel price data issued by the Central Energy Fund. 

If the prediction is realised, this would be the third consecutive fuel price hike. 

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In a statement, AA spokesperson Layton Beard says: "For the first time in a while, the Rand has shown reasonable strength against the US dollar during one of our reporting periods. However, this is not enough to counter rampant increases in the international prices of fuels, which have risen by up to six percent in the past two weeks.

He says without the benefit of the rand strength, the increase would have been as steep as 50 cents more.

The forecasted increase is likely to bring the prices to their highest point in three years.

According to economist at the Agricultural Business Chamber (Agbiz), Wandile Sihlobo, the fuel price is due to the fluctuation of the Brent crude oil price. 

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Sihlobo says this increase will place pressure on farmers as the new planting season begins. 

As a result of higher transportation costs consumers will be affected as food will become more expensive.