Save every Rand as fuel price is set to rise
"South Africans are paying at the pumps for weak governance, as one of the key indicators of the price of fuel depends on the exchange rate," says AA.
ACCORDING to the Automobile Association (AA), South Africans may expect a fuel price hikes at the end of October.
According to its data, AA said it believes petrol will go up by 99 cents a litre, and diesel and illuminating paraffin will increase by a whopping R1.42 a litre.
ALSO READ: Westville company and CROW run wild with 2022 calendar debut
“The hikes in diesel and illuminating paraffin would be the largest in South African history, bearing in mind that this is only based on half a month’s data. R20 a litre for petrol is now a realistic scenario before the end of 2021,” said the AA, adding that it sees little hope of improvement before the end of October.
“Brent Crude has broken through the $85 dollars per barrel mark, and the basket of oil prices used to calculate South Africa’s oil price are following Brent higher. We note the concern this is generating in the USA, where President Biden was reported to have called on the OPEC+ cartel to increase oil output to stabilise prices. This has not generated a response from OPEC+, and our view is that a response is not likely, since the current price pressures are beneficial to the cartel’s members,” the AA notes.
The AA further noted that during the first half of October, the average Rand/US dollar exchange rate jumped from around R14.55 to the dollar to R14.90. It said the Rand is still far above its June level of below R13.50 to the dollar, but the strengthening trend lasting nearly 15 months was abruptly reversed in June.
“South Africans are paying at the pumps for weak governance, as one of the key indicators of the price of fuel depends on the exchange rate,” the Association concluded.
* Notice: Coronavirus reporting at Caxton Local Media aims to combat fake news
Dear reader, As your local news provider, we have the duty of keeping you factually informed on Covid-19 developments. As you may have noticed, mis- and disinformation (also known as “fake news”) is circulating online. Caxton Local Media is determined to filter through the masses of information doing the rounds and to separate truth from untruth in order to keep you adequately informed. Local newsrooms follow a strict pre-publication fact-checking protocol. A national task team has been established to assist in bringing you credible news reports on Covid-19. Readers with any comments or queries may contact National Group Editor Irma Green (irma@caxton.co.za) or Legal Adviser Helene Eloff (helene@caxton.co.za).
