Petrol price forecast weighs heavily on the rand’s performance
JOBURG – The instability and weakening of the rand has added pressure on a possible fuel increase for Septemeber.
The Automobile Association of South Africa (AA) said in a statement that rand’s weakness the past few weeks has put pressure on the petrol price after a period of some stability.
Data released by the Central Energy Fund showed, “Petrol is showing an increase of up to 10 cents a litre, illuminating paraffin 12 cents, and diesel as much as 16 cents.”
Oil prices internationally have decreased since the beginning of August. According to the AA, there has been an uptick in oil prices and the fuel price could be under more pressure.
AA said the rand’s trading is key and the recent weakness meant that a possible decrease in petrol is unlikely. “The South African economy is in a parlous 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.”
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