Consumers in for a rough ride as cost of fuel is predicted to soar

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Consumers are in for a rough ride when fuel prices take a sharp turn next month. Mid-month data by the Central Energy Fund points to a petrol price incline of up to a R1, 45 cents per litre. Diesel users will pay even more, as an increase of around 2 rand 60 cents per litre is predicted. This will essentially bring the price of fuel back to over R23.

 

The Automobile Association’s Eleanor Mavimbela explains:

 

“The big worry is diesel. R2,60 per litre is quite worrying because we know diesel is a direct input cost, affecting quite a number of industries including mining, agriculture and food costs. So, unfortunately for September, it does not look good for consumers. The trucks used to distribute food use diesel and these fuel increases are then absorbed by consumers.”

 

Mavimbela says it’s however important to remember that these figures could change, as we near the end of the month.

 

“These are mid-month fuel predictions. Things can still change towards the end of the month. We could still get a slight decrease (in these figures). It won’t be much but we are looking at the trajectory of the international oil prices, as well as how the Rand is performing against the Dollar. We definitely are expecting quite a big increase with regards to fuel.”

 

 

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