Commenting on unaudited data released by the Central Energy Fund on Monday (October 16h), the Automobile Association (AA) said while the price of oil has declined by almost 20 cents a litre since the start of October, the weakening of the Rand by almost 22 cents against the US Dollar has all but eroded any gains in providing relief to already cash strapped motorists at the pumps, reports AutoDealer.
The AA said it therefore expects the price of petrol to spike by two cents a litre come November first, while both diesel and illuminated paraffin are expected to rise by 28 and 20 cents respectively.
“The latest data continues to show how vulnerable South African fuel users are to political and economic sentiment which negatively affects the Rand. We are not ruling out a further deterioration in the fuel price picture ahead of month end,” the statement read.
A short while ago the Rand was trading at R13.32 to the Dollar with Brent Crude Oil at $57.18 a barrel.
