Hefty fuel price jump predicted for September
Fuel users should definitely expect to pay more for fuel from the start of September thanks to stronger international fuel prices and a gradually weakening rand.
According to the Automobile Association, which commented on unaudited mid-month fuel price data released by the Central Energy Fund (CEF), these factors signal a hefty jump in the price of all fuel types at the end of August.
“The Rand has weakened an average of 20 cents against the US dollar since the start of August. Meanwhile, international fuel product prices have remained on the higher plateau they reached towards the end of July. This means all fuel types are likely to experience substantial price increases at month end,” the Association says.
Petrol is expected to increase by 63 cents a litre, diesel by 57 cents and illuminating paraffin by 58 cents.
The increase in illuminating paraffin in particular will have a strong negative effect on households which rely on this fuel for cooking, lighting and heating, says the AA.
“The rand’s trend over the past two weeks has been towards further weakness against the US dollar, and international fuel prices have traded in a fairly narrow band, meaning we do not expect the picture to improve by month-end,” the AA concludes.
