Share

'These fuel increases are catastrophic for road users - AA' - Another looming price hike for October

accreditation
Image: iStock
Image: iStock

Fuel users are facing unprecedented price increases in October. 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).

"These increases are catastrophic for road users," the AA says. 
 
"They are the biggest in South African history. The major culprit is South Africa's chaotic economic policy which has left us defenceless against upticks in international oil prices."

With the Rand and oil contributing almost equally to the rises, petrol is expected to be up by R1.01 per litre, with diesel spiking by a massive R1.24.

Illuminating paraffin users are also in for a shock hike with the price predicted to increase by a whopping R1.05.
 
"Excluding months where fuel taxes were hiked, this will be the largest single fuel price increase South Africa has ever experienced," the AA says. 

The Association says the impact inflicted on the economy by such increases may put pressure on President Ramaphosa's recently-announced stimulus package. 
 
"We estimate this increase could extract a further R2.5bn a month in transport costs from an economy that is already on the ropes," the AA says. 
 
"The cost of doing business will go up and consumer disposable income will shrink. We don't believe the economy could grow meaningfully under such conditions," the Association concludes.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE