Another significant increase in the price of fuel faces South Africans in the end of October. The statement was issued by the Automobile Association (AA) on Monday.
The AA commented on the early calculations made by the Central Energy Fund.
The AA stated in its statement: “International oil prices remain high and it is possible that current tensions over Saudi Arabia, one of the world’s largest oil suppliers, may put even more pressure on fuel prices. Good news, however, is that the rand has strengthened against the US dollar and it may serve as a buffer. ”
The proposed price increases are mainly affecting diesel users. “Petrol prices will probably rise by 40c per liter, diesel with 70c per liter and paraffin with 65c per liter,” said the AA.
According to the organization, the estimated increases should be seen. In light of the Department of Energy’s proposal to compile a maximum price for 93-octane lead-free (ULP) and lead replacement fuel (LRP).
“Traders will then be able to determine their own prices below the maximum amount indicated by government and, depending on the margins, can alleviate the burden on the consumer through these two types of fuel. Keep in mind, however, that the AA was not involved in compiling the proposal, so all details about possible implementation are still unclear. ”
The AA, however, welcomes the government’s efforts to address the issue of fuel prices.