Fill up your car’s tank before the end of the month‚ as petrol prices could go up by 51c/l.
The Automobile Association (AA) believes that South Africa’s recent period of fuel price reductions is set for a reversal due to a weakening rand and stronger international petroleum prices.
Commenting on unaudited mid-month fuel price data released by the Central Energy Fund (CEF)‚ the AA said: “The Rand’s slow‚ steady appreciation against the US dollar during July and August was dealt a considerable setback by the controversy surrounding the Hawks’ investigation of Finance Minister‚ Pravin Gordhan”.
“At around the same time‚ international petroleum prices began to appreciate‚ and the combined effect will be particularly significant for users of petrol.”
While diesel and illuminating paraffin are currently showing increases of around 24 cents per litre‚ the AA says current data on petrol shows the hike is likely to be around 51 cents.
“With the Rand still on a weakening trend against the US dollar‚ the fuel price move at the end of September will depend largely on international petroleum prices‚” the AA added. “Any significant international event which leads to further oil price strength is almost certain to be bad news at the pumps for South Africans.”