HIGHER international petroleum prices are the main driver behind the expected fuel price increase.
Petrol is expected to increase by between 43 to 45 cents a litre, diesel by 23 cents and illuminating paraffin by 22 cents.
According to the Automobile Association (AA), commenting on unaudited month-end data released by the Central Energy Fund (CEF), oil regaining its strength is the culprit.
‘The Rand declined early in September against the US dollar, but has since strengthened,’ said the AA.
‘Only around eight cents of this month’s increase will come from Rand weakness. It is oil strength which has been the major contributor.
‘Time will tell how stable the Rand/US dollar exchange rate is likely to be, but we note with interest the agreement reached by OPEC (Organisation of Petroleum Exporting Countries) members to limit oil production, the first such cut since 2008,’ the AA said.
The association said the decision by OPEC to trim output by up to 700 000 barrels per day could, if accepted at the group’s November meeting, have the effect of stimulating international petroleum prices, but may also lead to increased production by non-OPEC members.
‘If the Rand remains volatile, South Africans will be more exposed to changes in the oil price, and we advise motorists to continue to economise in the absence of a clear picture of what effect the OPEC decision may have.’
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