A significant petrol price increase is anticipated to take effect tomorrow, adding to the financial burden on households as they continue to recover from the expenses of the festive season.
According to the Automobile Association (AA), unaudited fuel data from the Central Energy Fund indicates that 93ULP and 95ULP petrol prices are expected to rise by approximately 64 c/l and 66c/l respectively. Diesel prices are also projected to increase by around 63c/l, while illuminating paraffin is expected to become 47c/l more expensive.
The AA explains that the increase in international oil prices is a major contributing factor to these price hikes, with the weaker average Rand to US Dollar exchange rate also playing a smaller role.
As a result, the cost of a litre of 95ULP petrol inland is set to rise from its current level of R22.49/l to R23.15/l, while 93ULP petrol will increase from R22.17/l to R22.81/l.
These petrol price increases will undoubtedly have a negative impact on household budgets, particularly during this early part of the year when many consumers are still recovering from festive season spending and stretched finances.
The cumulative effect on personal finances will further reduce disposable income, which will be exacerbated by the increased costs of goods and services that need to recoup higher fuel input expenses.
In light of these developments, the AA strongly advises consumers to closely monitor their fuel usage and adjust their budgets accordingly.
They also recommend ensuring that vehicles are well-maintained and in good mechanical condition, planning routes carefully, and avoiding heavy traffic whenever possible, as these measures can help improve fuel consumption.
As the expected petrol price increase looms, it is crucial for individuals to be proactive in managing their fuel expenses and making informed decisions to mitigate the impact on their household budgets.