Brace Yourself For Record-High Fuel Price Increase In May

Motorists could be in for a shock.
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Motorists are in for a shock in May, when fuel prices could reach a record high, Fin24 reported. The Automobile Association (AA) reportedly said on Wednesday that thanks to the weakening rand and international petrol prices rising, May could see petrol prices skyrocket.

Toll fees increasing across the country could also increase by 6% and 7% would further burden motorists, the AA reportedly said.

Fuel levies rose by 52 cents a litre in April, while VAT rose by one percentage point, Fin24 reported.

The AA reportedly said: "The financial weight of all of these increases is not sustainable, especially considering these increases – just as the fuel levy increases earlier – are above inflation. With fewer people receiving increases to their salaries or wages – or receiving inflation-linked increases – these toll hikes are another burden for consumers to bear."

Two weeks ago, commenting on unaudited mid-month data released by the Central Energy Fund, the AA reportedly said the spike in international fuel prices is the main reason for the expected increase.

"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," the AA said, according to The Citizen.

Instability in the Middle East is largely to blame.

"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," the AA reportedly said.

This is on top of an already price increase in mid-April. According to Business Report, fuel prices in Gauteng increased by up by 72 cents a litre for 95 octane petrol, and 69 cents for 93 octane petrol.