BusinessLive reports that the AA has warned that motorists could be hit with “catastrophic” fuel price hikes next month as a result of increasing oil prices.

In its mid-month outlook, the association expects petrol to rise around 99 c/l, with diesel and illuminating paraffin increasing by R1.42 /l, when fuel prices are adjusted on 3 November. This would push 95 unleaded petrol inland to a record R19.32/l — a 30% increase since January — and the wholesale price of 50ppm diesel to R17/l — also the highest ever. “The hikes in diesel and illuminating paraffin would be the largest in SA history, bearing in mind that this is only based on half a month’s data,” the AA said. It advised that R20 a litre for petrol was now a realistic scenario before the end of 2021. The Association doesn’t expect the oil price squeeze to ease in the short term, as the demand for oil will increase as the northern hemisphere enters its winter season. Fuel prices are adjusted on the first Wednesday of every month by the Department of Mineral Resources and Energy.

• Read the full original of the report in the above regard by BusinessLive

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