The Automobile Association (AA) predicts that the price of petrol will rise to 24 rupees a liter and diesel to ISK 23.60 thousand a liter in April.
The organization says the main driving force behind the rises is a movement in international oil prices that has risen to record highs in recent weeks due to the conflict in Ukraine and concerns about Russia’s oil reserves.
The increase in fuel prices is expected to have a serious knock-on effect on consumers who are already in difficulty.
According to Layton Beard of the Automobile Association: “If the end of the month becomes a reality, this will be the largest increase in fuel prices in the history of South Africa and will undoubtedly have major consequences for consumers and the economy in general.
Says Beard: “You still have to keep in mind that this is the mid-month outlook and oil prices are rising sharply at the moment. So they could still be some relief before the official DME adjustment takes place in April.
Economist Kulani Siweya says a number of sectors would welcome a possible government move to halt fuel levies due to rising global oil prices.
In a presentation to the Althingi, Minister of Energy Gwede Mantashe announced that South Africa must find ways to minimize the impact of rising fuel prices on the economy.
In the video below, economists expressed concern as global oil prices rose above $ 130 a barrel earlier this week:
Fuel price methodology
The Employees’ Association of the Automotive Industryregistered trade union in the retail car industry, has asked the government to include it when reviewing the fuel price methodology in South Africa.
The organization says it is concerned about rising petrol prices and wants clarity.
Sonja Carsten’s spokeswoman says the fuel price hike will affect its members:
AA predicts that petrol prices will rise to R24 per liter – SABC News
Source link AA predicts that petrol prices will rise to R24 per liter – SABC News