Motorists are set for a bumpy ride in August as the Automobile Association announced gasoline price increases
There is no reprieve for customers since fuel prices increased on Tuesday at midnight, August 1st, due to a rise in the pricing of Brent Crude Oil.
Consumers are feeling under pressure from rising interest rates, food prices and energy expenses have begun digging further into their pockets and filling up their tanks on Wednesday,.
Oil prices rallied to a three-month high early in the week after hovering around $81 (R1 469) a barrel last week. The rally follows better-than-expected global demand and supply disruptions in Nigeria and Libya and the output cuts by the Organization of the Petroleum Exporting Countries, driving the oil price to over $85 a barrel by midday on last Tuesday.
The increase comes despite an improvement in the rand and a stay in interest rate hikes by the Reserve Bank.
While the rand firmed over the past month, the Department of Mineral Resources and Energy said that the hikes were due to an increase in the Brent Oil price from $75.10 to $79.75 a barrel. This is because oil demand increased from China and India. Saudi Arabia also continued to cut its production.
"Most analysts expect the supply constraints to push the price higher in the next few weeks," said the statement.
