Here’s why the petrol price is about to spike

Motorists lined up at petrol stations in South Africa on Tuesday evening to fill up their tanks before increased fuel prices kicked in at midnight.

On Friday the Department of Energy announced petrol hikes of 52 cents per litre for petrol of all grades and 78 cents per litre for diesel.

The Automobile Association (AA) of South Africa expressed concern that even if the global demand for oil diminished, a weak rand to US dollar exchange might mean more bad news for South African motorists – including minibus taxi operators – in 2016.

So, what is behind the latest increase in fuel prices? Layton Beard, spokesperson for the AA South Africa, explains.

Similarly, debt expert Neil Roets of Debt Rescue, described the two factors playing into the latest round of fuel increases.

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