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Consumer Alert: Petrol prices on the rise

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By Dideka Njemla

Motorists can expect sharp fluctuations in the petroleum product prices at the start of next month. According to latest data by the Automobile Association of South Africa (AA) all grades of fuel are predicted to increase pending the Department of Mineral Resources and Energy approval thereof which is set to be heard on Monday, 4 September, as the petrol retail price is regulated by government and is adjusted every first Wednesday of the month.

Unleaded 95 and 93, comes with an increase of approximately R1.45c and R1.41c per litre, while Diesel is predicted to have a massive increase of R2.60c per litre, followed by paraffin at R2.50c per litre. This hefty rise in fuel prices comes as a shock to not only motorists but also businesses, as diesel is a crucial part of input costs in businesses. The weak value of the rand is said to be one of the major issues that has affected the increase in petroleum product prices.

AA spokesperson, Eleanor Mavimbela stated the significant increase in the retail prices of Diesel is affected by two significant factors which are the international oil prices and the rand dollar exchange rate.

“This is the first big increase that we have had this year with regards to petroleum product prices. We are possibly looking at the unleaded prices being pushed to nearly the R25 mark with regards to inland areas,” shared Mavimbela.

Touching on government regulated taxes, Mavimbela advised it would be a sustainable solution for the government to consider their overall calculation process to ensure that consumers are not financially strained. Pending fuel prices have been supported by the poor value of the rand, which is not influenced by the local issues that the country faces, but by the Chinese economic data that has unnerved the market.

Mavimbela concluded by saying the country will definitely be facing an increase in petroleum product prices, however the AA is hoping, it is not as hefty as their assumed predictions.

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