Commenting on the unaudited mid-month fuel price data released by the Central Energy Fund (CEF), the AA says the data is forecasting a sharp jump in fuel prices at the end of November.
The association states motorists cannot expect much respite from a weakening domestic picture.
“The rand is testing one-year lows against the US dollar and in addition, there have been heavy increases in international oil prices.”
Illuminating paraffin tops the list with a projected increase of 75c a litre, while petrol is set for a 74c rise and diesel will see an increase of 63c.
The AA cautions that the picture may worsen before the end of the month.
“We cannot ignore signs that South Africa may face a further round of downgrades by ratings agencies, possibly even before December,” the AA says.
“Concerns over government’s economical discipline are likely to continue weighing heavily on the rand and if these factors combine with continued oil strength, South Africans will face heavy fuel price hikes for the remainder of this year and into early 2018,” the AA concludes.
