Fuel price set to rise in November
The Automobile Association (AA) has confirmed a minor increase in the price of fuel for November, with diesel and illuminated paraffin set for steeper hikes.
In a statement, the AA reiterated that while the price of fuel dropped by 18 cents in October, the weakening of the Rand against the US Dollar actually came to 22 cents, eroding any gains that might have occurred. While the price of petrol will be four cents a litre dearer from Wednesday (1 November), diesel will rise by 26 cents and illuminated paraffin by 18 cents.
It further predicted that more hikes on the cards for December as the “full effect of the Rand’s weakening in the wake of Finance Minister Malusi Gigaba’s Medium Term Budget Policy Statement” has not yet been felt.
“We expect that impact to immediately start feeding into the next month’s fuel price calculations, meaning South Africans should prepare for further fuel price hikes before Christmas,” the statement read.
The release of Gigaba’s mid-term budget on Thursday, which painted a negative outlook in terms of economic growth, saw the Rand plummeting against the US Dollar from R13.32 earlier this month to R14.19 a short while ago, while Brent Crude Oil rose from $57.18 to $59.41 a barrel.
via Autodealer
