“Petrol is expected to increase by between 43 to 45 cents a litre‚ diesel by 23 cents‚ and illuminating paraffin by 22 cents‚” the Automobile Association (AA) said on Friday.
Stronger petroleum prices “have contributed the bulk of the fuel price increase expected at the end of September”‚ it said‚ adding that the “rand declined early in September against the US dollar‚ but has since strengthened”.. “Only around eight cents of this month’s increase will come from Rand weakness. It is oil strength which has been the major contributor.”
The AA said the decision by the Organisation of Petroleum Exporting Countries (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.”