17 April 2018, Cape Town: According to the Automobile Association (AA), which was commenting on unaudited mid-month data released by the Central Energy Fund.
“Petroleum prices were largely flat in the first week of April, but spiked sharply as tensions escalated in Syria,” the AA says.
“On the current data, petrol is set for a rise of 41 cents a litre, diesel 48 cents, and illuminating paraffin 38 cents. In all of these increases, the movement in the exchange rate accounts for just four cents of the rise,” notes the AA.
The predicted increase in May comes on the back of a 72 cents increase in April meaning, if it materialises, that fuel prices will have increased by more than one Rand in the space of two months.
The petrol price hit an all-time high of R14.76 per litre of 95 grade in December 2017 – a 41 cents hike on the current price would push the same grade up to R14.89 in May 2018.
The AA said prolonged instability in the Middle East could drive international petroleum prices higher.
“Several foreign powers have now taken a position in the Syrian civil war. If tensions escalate, or the war itself drags out even further, the outlook for oil prices would become more negative. South Africans should be aware that their fuel budgets might come under renewed strain in the short to medium term,” it said.
|Fuel Grade||April||Expected for May|
|0.05% Diesel (wholesale)||R12.75||R13.23|