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Fuel to tick up as oil prices firm

The Automobile Association (AA) is predicting an increase of between 31 and 35 cents a litre for petrol, this to be added to the 30 cents a litre increase in the fuel levy which becomes effective from April. The AA, commenting on unaudited mid-month data released by the Central Energy Fund (CEF), said sustained gains in international petroleum prices were the biggest factor affecting the predicted hikes.

"The current picture is of a price increase ranging from 31 to 35 cents a litre for petrol, 60 cents for diesel and 52 cents for illuminating paraffin," the Association said.

"Although the average Rand/US dollar exchange rate has continued to retreat since the beginning of the month, this positive factor has been overcome by the renewed uptick in oil prices," the AA added.

The next fuel price increase will also include the 30 cents a litre hike in the fuel levy announced by Finance Minister Pravin Gordhan in his February budget.

"Combined with the fuel levy increase, the predicted increase of 60 cents a litre for diesel, could mean a price increase of nearly a Rand a litre for diesel users," the Association commented.

"Along with the further interest rate hike announced by the SA Reserve Bank yesterday, motorists' budgets are likely to come under renewed pressure next month," it concluded. 


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