South Africa Automobile Association expects fuel prices to increase in April

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Industry
Industry

The Automobile Association of South Africa (AA) on Wednesday said the diesel and petrol price is likely to increase around April with the Russian-Ukrainian war being one of the contributing factors.

The AA commented on the data released by the Central Energy Fund (CEF) which said it points to fuel prices increasing to 24 rand per liter (1.6 U.S. dollars) for petrol and 23.6 rand for diesel.

“If realized at month-end, these will be the biggest increases to fuel prices in South Africa’s history and will, undoubtedly, have major ramifications for all consumers and the economy in general,” said AA in a statement.

“We must note, though, that this is the mid-month outlook, and oil prices are, for the moment, see-sawing significantly so there may yet be some relief before the official adjustment by the department of mineral resources and energy is made going into April,” it added.

The fluctuations in fuel prices have been attributed to the war between Russia and Ukraine. Russia is one of the world’s major crude oil producers and has been slapped with sanctions by the EU, Britain and the U.S.

The AA warned that if the Ukrainian-Russian war persists it will further hurt South Africans.

“Locally there is little to cushion the blow for millions of South Africans who are struggling to cope with a fragile economy which is hurting their personal financial situation. Consumers should brace themselves and prepare for what is likely to be a long winter if the conflict in Ukraine is drawn out,” said the AA. Enditem

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