Fuel price hike looms
Based on the unaudited mid-month fuel price data released by the Central Energy Fund, the Automobile Association (AA) has predicted an increase of up to ten cents a litre for petrol, 12 cents for illuminating paraffin and 16 cents for diesel
THE weakness of the rand has turned a likely fuel price reduction into an across-the-board increase for September.
Based on the unaudited mid-month fuel price data released by the Central Energy Fund, the Automobile Association (AA) has predicted an increase of up to ten cents a litre for petrol, 12 cents for illuminating paraffin and 16 cents for diesel.
‘International oil prices have dropped markedly since the beginning of the month, with crude oil having consistently traded below 60 US dollars per barrel.
‘In recent days though, there have been signs of an uptick, which could see fuel prices come under renewed pressure,’ the AA said.
However, the AA said the rand plummeted over the same period after trading within a consistently narrow band since June.
‘We are concerned that there may be worse to come.
‘The South African economy is in a precarious state with ongoing policy uncertainty and a growing debt burden.
‘The country is ill-placed to weather its domestic challenges, let alone developments on the international front, and this leaves fuel users increasingly exposed to movements in the rand,’ concludes the AA.
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