Steep petrol price hike tomorrow
COMMUNITY – Motorists can expect a steep petrol price rise to hit the pumps at midnight tonight.
Petrol is slated for a rise of 49 cents per litre, with diesel up by 33 cents per litre, and illuminating paraffin by 35 cents a litre. This in the wake of a depreciated Rand value which has affected buying prices for international petroleum.
As based on the unaudited mid-month fuel price data release by the Central energy Fund (CEF), the Automobile Association (AA) predicted a hefty petrol increase of 55 cents per litre in mid April. “The loss of confidence by investors, and the sovereign ratings downgrades by ratings agencies Fitch and S&P, have led to the Rand slipping heavily against the US dollar, down from around R12.35 at the beginning of the month to its current position of around R13.40,” sad the AA in press release earlier this month.
The slightly lower price rise expected tomorrow rests on the Rand strength. “After a sharp rise from the end of March, international petroleum prices have given up almost all their gains in the past two weeks. Over the same period, the Rand has unexpectedly firmed to near its pre-cabinet reshuffle levels,” said the AA in a recent press release.
Rand weakness has reportedly contributed three-quarters of the expected fuel price increase with hikes in international petroleum prices accounting for the balance.