Another big petrol price hike possible in May

File: Petrol could increase by 41 cents a litre (c/l) in May, preliminary data released by the Central Energy Fund showed on Monday. Photo: Ronaldo Schmeidt / AFP

JOHANNESBURG – Petrol could increase by 41 cents a litre (c/l) in May, preliminary data released by the Central Energy Fund showed on Monday.

Diesel is expected to jump by 48 c/l, while illuminating paraffin could rise by 38 cents on current data.

This will be bad news for cash-strapped consumers, who faced an increase of 72c/l in April and a 1 percent hike in value added tax (VAT).

The Automobile Association of South Africa said the hike was largely due to rising crude price, which was hovering near 2014 highs.

READ: Oil slips from multi-year high

A secondary factor was the slight weakening of the rand, which added 4 cents to prices.

If the latest hikes do materialise in May, it would be the second consecutive hike in the past two months, amounting to an over R1 increase.

READ: Big spike in petrol price

The AA said prolonged instability in the Middle East region could further drive prices higher in future.

“South Africans should be aware that their fuel budgets might come under renewed strain in the short to medium term,” the association added.

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