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Fuel prices will hit record highs in May. This is according to the Automobile Association (AA) which was commenting on unaudited month-end fuel price data released by the Central Energy Fund (CEF).
“A substantial weakening of the Rand against the US dollar has combined with sharp increases in international oil prices to produce a new record-high fuel price of over R15 Rand a litre for fuel,” the AA says.
The previous highest price for fuel was in December last year when petrol cost R14,76 a litre.
“The outlook at mid-month, of around a 50 cents-a-litre increase, appeared manageable, but the sharp deterioration in the position of the Rand over the past week has been almost without precedent,” the Association comments.
Petrol is set to increase by 92 cents a litre, diesel by R1,07 and illuminating paraffin by R1,06.
The expected increase will move the cost of a litre of fuel, 93 octane (inland) to R15,15 a litre. At the same time last year, this fuel cost R13,57 a litre. The increase represents a R1,58 increase year-on-year, an 11,64% increase.
Based on the current price of R14,23 for a litre of 93 unleaded octane petrol (inland), a 50 litre tank of fuel costs R711,50. With the expected 92 cents a litre increase, this fuel will now cost R15,15 a litre. Filling a 50l tank will cost R757,50, R46 more than last month.
“This increase is going to hit users of illuminating paraffin particularly hard as we head into the colder months where many households use this fuel for lighting, heating and cooking,” says the AA.
These expected increases come on the back of the substantial increases to fuel prices in April, which saw the addition of 52 cents a litre being added for the general fuel and Road Accident Fund levies.
“Motorists should be aware that further oil strength and Rand weakness could produce further increases in the short to medium term,” the Association concludes.