Third petrol hike on the table – AA

The Automobile Association (AA) has warned of a third consecutive petrol price increase for May, as a result of heavy imports.

AA estimates a petroleum increase of 56 cents while diesel shows a five cents drop.

This follows an almost R1.34 increase earlier this month.

In total, petrol has increased by R4 (12%) since the beginning of the year.

Government intervention is most unlikely after last year’s failure when energy minister Jeff Radebe decided to take 20 cents off the September 2018 increase which instead caught up in October 2018.

According to political journalist Tom Head, October’s R1 increase could have been a mere 50 cents had government not intervened.

Although the rand has been performing well against the dollar – so much so that Moody’s has pushed any potential ratings to 1 November – it is too volatile to make a significant difference.

"The ground gained by the local currency has cushioned some of the blow, with diesel currently showing a slight decrease. But petrol users are in for a shock," the AA said.

A number of organisations like Cosatu has appealed to government to implement a fuel price cap.

According to the labour congress, “38% of the fuel price goes to taxes that are being wasted and looted with impunity. It is puzzling that fuel is now far cheaper in neighbouring states even though their fuel is imported through South African ports.”

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