Commenting on unaudited data released by the Central Energy Fund on Thursday (June 28th), the AA said that the decline in international oil prices and a virtually unchanged Rand/US Dollar exchange rate from the beginning of June, had contributed to preventing yet another hefty uptake.
Based on the data, the price of petrol is set to go up by 26 cents a litre and diesel by 24 cents, while illuminating paraffin will rise by 20 cents. The association however stated that matters, if not for the slide in oil prices, could have been a lot worse.
“If oil had remained flat in June instead of declining, price increases of 40 cents a litre would have been likely for July. And if it had followed its upward path of May, the increase would have been nearly 80 cents,” the AA said.
Despite the smaller increase, the AA warned that further fuel price hikes remained on the cards for the rest of the year, in response to the weak local economy and ongoing trade tariff disputes between the United States and other countries.
“Given the increased cost of fuel in South Africa, we urge the government to reconsider the high cost of the added taxes which account for up to one-third of the petrol price. Currently, R5.30 of every litre of petrol is paid towards the General Fuel Levy and the Road Accident Fund Levy,” the AA continued.
“Combined with lower wage hikes and the increasing cost of living, the expenses of commuting by private car might spiral beyond many motorists' reach. Commuters who would never previously have considered public transport or carpooling may soon have no option”.
By mid-day on Thursday, the Rand was trading at R13.82 to the US Dollar with Brent Crude Oil at $77.07 a barrel.
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