{"id":123331,"date":"2016-05-31T08:45:00","date_gmt":"2016-05-31T06:45:00","guid":{"rendered":"http:\/\/germistoncitynews.co.za\/123331\/get-ready-to-pay-more-at-the-pumps\/"},"modified":"2016-05-31T15:13:59","modified_gmt":"2016-05-31T13:13:59","slug":"get-ready-to-pay-more-at-the-pumps","status":"publish","type":"post","link":"https:\/\/develop.citizen.co.za\/germiston-city-news\/news-headlines\/2016\/05\/31\/get-ready-to-pay-more-at-the-pumps\/","title":{"rendered":"Get ready to pay more at the pumps"},"content":{"rendered":"

Fuel prices are set for a sharp jump at the beginning of June, with the potential of further rises in the medium term.<\/p>\n

This is according to the Automobile Association (AA) <\/a>which was commenting on unaudited month-end data supplied by the Central Energy Fund (CEF).<\/p>

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\u201cInternational petroleum prices continued their upward march during May and the weakening Rand\/US dollar exchange rate has exposed the consumer to the full force of oil\u2019s strength,\u201d the AA said.<\/p>\n

\u201cPetrol is set for a rise of 52 cents a litre in June, illuminating paraffin will be up 61 cents, and diesel a full 78 cents.\u201d<\/p>

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The AA said it was concerned by the steady rise in oil prices in the current weak Rand environment, notwithstanding international opinion that global over-supply could see prices pull back.<\/p>\n

According to the Department of Energy, crude oil benchmarks have rallied since late April due to issues regarding geopolitical concerns affecting the market.<\/p>\n

Reductions in output in Nigeria, Columbia and the US contributed to the surge in prices during the past month.<\/p>\n

In response to questions from the AA the department noted that \u201can energy crisis in Venezuela, where power outages due to a drought and subsequent reduction in power generation at the country\u2019s main hydropower facility, was beginning to affect the wider economy including operations in the oil and gas sector\u201d.<\/p>\n

It noted that the recent wildfires in Canada reduced crude oil exports to the US, forcing the county to draw on inventories.<\/p>\n

\u201cWith South Africa\u2019s weak economy, our concern is that even if oil prices moderate, further declines in the Rand will mask the benefit.<\/p>\n

\u201cIt is possible that fuel prices will test new highs in the coming months, placing yet more stress on consumers,\u201d the AA said.<\/p>\n

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