Cape Town - Unaudited data from the Central Energy Fund (CEF) is predicting the biggest fuel price hike in South Africa's history by some margin,according to a report by the Automobile Association (AA) which has monitored the fuel price data from 1 September to date.
According to the report, a spike in international oil prices and a huge swing in the Rand/US dollar exchange rate have combined to predict a blow at the pumps at the end of September.
Based on the current data, petrol users will be paying R1.12 more per litre! The report also shows diesel users will be hit the hardest, with a possible price hike of R1.38 per litre, pushing diesel to within a whisker of R16 per litre.
To put this in perspective, should this increase materialise, it will push the price of 93 unleaded octane fuel inland close to R17 a litre, off a January price of R14.20 – a total increase of around 20%, year-to-date.
This massive hike in the diesel price might be catastrophic for the agricultural sector which is already reeling from the prolonged drought. Extreme fuel price hikes could push marginal businesses, including farms, to financial breaking point, and have a massive negative impact of consumer pricing.
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