Petrol expected to increase once again
JOBURG – The Automobile Association (AA) of South Africa explained that drone attacks on the oil refinery in Saudi Arabia in mid-September has impacted the fuel price.
The Automobile Association (AA) of South Africa is predicting the fuel prices to increase in October due to the tensions between Yemen and Saudi Arabia after drone attacks on the Abqaiq oil refinery in Saudi Arabia.
According to the AA, the impact of the attacks will cause a further spike in the fuel price. They predict an increase of around 19 cents a litre for 95 octane petrol, with diesel set to rise by 25 cents and illuminating paraffin by 24 cents.
However 93 octane petrol is expected to dodge the increase and decline by four cents a litre.
The rand has performed strongly against the US dollar in the month of Septemeber helping ease the petrol increase, AA said, “Without the rand’s performance, we could have been looking at price rises in excess of 40 cents a litre for some fuels.”
The AA has warned that the large oil refineries and storage depots have proven difficult to defend against sneak attacks, and are concerned that copycat attacks could lead to further unpredictable price shocks for liquid fuels.
“South Africa’s transport economy is underpinned by liquid fuels and is extremely vulnerable to price impacts and fuel shortages. The government should urgently prioritise mitigations to protect against the potential of conflict-related instability in oil supply and pricing,” the AA concluded.
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