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AA warns of 'catastrophic' fuel price hikes for November

18 October 2021 1:13 PM
Tags:
Automobile Association of South Africa
Automobile Association AA
fuel price increase

The warning was based on the data from the recent exchange rate and commodities.

JOHANNESBURG - The Automobile Association of South Africa has warned motorists to brace for fuel prices hikes of "catastrophic proportions" in November.

The warning was based on the data from the recent exchange rate and commodities.

The AA predicted that South Africans would see the petrol price increase by 99c a litre while diesel and paraffin would increase by a massive R1.42 cents a litre.

The increases, AA said, would push the inland price of 95 ULP above R19 a litre and R17 a litre for diesel.

According to the AA, the petrol price could break R20 a litre before the end of the year.

"The hikes in diesel and illuminating paraffin would be the largest in South African history, bearing in mind that this is only based on half a month's data. R20 a litre for petrol is now a realistic scenario before the end of 2021," says the AA in a statement.

"Brent Crude has broken through the 85 US dollars per barrel mark and the basket of oil prices used to calculate South Africa's oil price are following Brent higher. We note the concern this is generating in the USA, where President Biden was reported to have called on the OPEC+ cartel to increase oil output to stabilise prices. This has not generated a response from OPEC+, and our view is that a response is not likely, since the current price pressures are beneficial to the cartel's members," the AA notes.

The AA said that it did not expect the oil prices to ease in the near future, especially as the northern hemisphere entered its winter.

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This article first appeared on EWN : AA warns of 'catastrophic' fuel price hikes for November




18 October 2021 1:13 PM
Tags:
Automobile Association of South Africa
Automobile Association AA
fuel price increase

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