THERE are tough times ahead!

The price of petrol is probably going to go way above the R15 per litre mark.

The Automobile Association of South Africa said the price has been consistently climbing over the past few months following the government’s decision to increase the levy, as well as the price of Brent crude oil and a weakening rand.

The increase in June could be big.

South African fuel users face increases of 74 cents a litre for petrol, 81 cents for diesel and 78 cents for paraffin. The AA said the rise in fuel prices would increase the cost of doing business and companies have few options but to pass these costs on to consumers.

“Worryingly, people who use illuminating paraffin for lighting, heating and cooking will suffer a further blow as the country heads into winter,” the AA said.

It looks as if consumers will definitely feel the brunt of the consistent increases. Santaco said they expected the prices to go up. “We’ve seen it coming for a long time. We haven’t recovered from the increased VAT yet,” said spokesman Thabisho Molelekwa.

He said they were worried about the impact the increase would have on commuters.

“We are currently looking at ways to manage the impact of the increasing petrol price. We have to react at some point,” he said.

“We don’t want to increase our prices every time there’s a hike in the petrol price.”

Source: Dailysun