Brace yourselves, motorists as the Automobile Association of SA is forecasting steep increases in the price of petrol, diesel and paraffin. Here’s why.

A number of factors have contributed to the predicted fuel price hikes, but more seriously, the AA is calling on South Africans to limit all non-essential travel as potential fuel shortages could happen. One of SA’s biggest refineries is based in Durban and in light of the recent civil unrest, has been shut down. ThisSouth African Petroleum Refiners (SAPREF) facility supplies 35% of SA’s fuel.

“SAPREF’s declaration offorce majeuremeans that events beyond its control – the recent lawlessness – has forced it to shut down the refinery,” the Association explains.The AA warns that if an operational refinery were to be overrun by criminals, surrounding areas would be at great risk.“Past disasters involving refineries have polluted wide areas and claimed hundreds of lives, so SAPREF’s caution is justified. If the shutdown were to be protracted though, it could impact considerably on fuel supply to many areas, including Gauteng and other northern provinces inland,” it adds.

Other factors that are influencing the prices include the exchange range where the Rand/US Dollar has spiked since the 12th of June. SA imports a fair amount of fuel, which will now obviously cost more. Compounding this is the international price of oil which has been steadily increasing.

So, what’s the bad news? The price of petrol is headed for anincrease of 87 cents a litre, diesel 58 cents, and illuminating paraffin 56 cents. Note thatwhile the supply of fuel will not push the prices of fuels higher, the weakening Rand as a result of the riots will play a major role as the exchange rate is a key indicator for the SA fuel price.

What can be done? The AA says motorists should avoid unnecessary trips and not stockpile.“We also advise citizens to work remotely where possible, and our plea to business is to accommodate the difficulties their staff may face if mass transit is affected by fuel shortages” said the AA.

Further Reading

SA Petrol Price– Where Does Our Money Go?

5 Ways to Beat the Fuel Price Hike

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Most Fuel Efficient Budget Cars in SA

Most Fuel Efficient Diesel Cars in SA

Most Fuel Efficient Petrol Cars in SA