Motorists in South Africa can expect further fuel price increases in May 2018 based on unaudited mid-month data released by the Central Energy Fund says the Automobile Association of South Africa (AA)…
Motorists are in for another round of fuel price increases in May 2018 as escalating tension in Syria and the Middle East has sent international petroleum prices soaring in the first half of April.
The Rand also weakened against the US Dollar over the same period and based on unaudited mid-month data, the AA predicts that the petrol price could rise by as much as 41 c/l and diesel by 48 c/l.
“Petroleum prices were largely flat in the first week of April, but spiked sharply as tensions escalated in Syria. The Middle East lies near many of the world's key oil producers, and petroleum prices have historically been sensitive to instability in the region" says the AA.
Rising international petroleum prices is the main contributing factor for the expected increase while the weaker Rand accounts for only 4 cents in the rise according to the AA.
Motorists were hit with a 72 cent increase in April and if these latest predictions materialise, it would mean that fuel prices will have increased by more than R1 in the space of 2 months.
The AA warns that prolonged instability in the Middle East could driver international petroleum prices even higher.
"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 concludes.