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Can motorists expect yet another increase in fuel prices during the month of May?

Preliminary data released by Central Energy Fund shows that petrol could increase by as much as 41 cents a litre. Diesel is expected to increase by 48 cents a litre. With April seeing petrol prices going up by 72 cents a litre and a one per cent increase in VAT, the possible fuel hike will not be met with enthusiasm.

The Automobile Association (AA) claims the petroleum prices spiked sharply following the escalating tension in Syria. This is due to the Middle East laying near many of the world’s key oil producers. With petroleum prices being sensitive to instability in the region, the Syrian tensions are not helping the fuel prices.

With foreign powers now taking a position in the Syrian civil war, if tensions continue to escalate or if the war prolongs, the outlook for oil prices will take an even bleaker look.

Furthermore, the rand has also weakened against the US dollar in the first half of April. This also plays an instrumental role in the price increase. However, the AA claims the increase in international petroleum prices accounts for virtually the entire rise in the prices.

With this in mind, South Africans need to be aware their fuel budgets will possibly face even further strains in the coming future.

Let us know how you intend to save fuel in the upcoming months? Also, what are your thoughts on the rising fuel prices?