Battered rand fuels September fuel price hikes

More fuel price hikes are on the way courtesy of a weaker rand. This is according to the Automobile Association (AA), which was commenting on unaudited month-end fuel price data supplied by the Central Energy Fund (CEF).

“International petroleum prices remained virtually unchanged on average during August,” the Association said.

“But,” it adds, “the rand lost substantial ground against the US dollar, increasing the landed price of fuels.”

ALSO READ: Petrol prices to remain virtually unchanged in August

Petrol is expected to increase by between 23 and 25 cents a litre, with diesel rising by around 28 cents and illuminating paraffin by 17 cents.

“This will, for the first time, push the cost of 93 unleaded octane fuel inland above the R16 a litre mark, a significant barrier,” the AA noted.

Looking to the future, the AA says the September outlook is bleak.

“The rand remains under pressure and a recent spike in international oil prices could mean more pain at the pumps if it continues. A return to cheap fuels doesn’t look likely and consumers will continue to be forced to economise,” concluded the AA.

A press release by parliament stated on July 6 that by July 20 President Cyril Ramaphosa would, “announce economic measures to help South Africans deal with rising fuel prices and the recent VAT increase”. Such measures have yet to materialise.

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