Fuel prices set to rise, again
Motorists will have to brace themselves for further fuel price hikes likely to occur at the end of October.
The Automobile Association (AA) was commenting on unaudited mid-month fuel price data released by the Central Energy Fund (CEF).
There has been a definite appreciation in oil prices since the Organization of Petroleum Exporting Countries (OPEC) resolved to cut oil production, according to the AA.
The international price of petrol has climbed from 136 US cents per gallon to 148 cents since 27 September this year. Despite the Rand’s gradual appreciation against the US dollar over the same period, there has been a substantial impact on what South Africans are likely to be paying at the pumps next month.
The Association stated the current data predicts petrol will increase by around 48 cents a litre, diesel by 64 cents and illuminating paraffin by 57 cents. Per litre.
The motoring body added that the full effects of the Rand’s recent decline in the wake of the NPA’s decision to charge Finance Minister, Pravin Gordhan with fraud had not yet filtered into the data, and could be expected to put further pressure on fuel prices before the end of the month.
The AA stated it hopes the above mentioned matter will be brought to a swift conclusion to reduce the tensions that South Africa’s markets are currently experiencing, and to bring more stability to our economic outlook.
