Fuel price increase expected
JOBURG – Motorists and consumers at large might have to tighten their belts as the Automobile Association of South Africa (AA) revealed that the Department of Energy might announce fuel price hikes today.
Commenting on unaudited month-end data released by the Central Energy Fund, AA spokesperson Layton Beard said the flat oil prices and wide swings in the exchange rate have set South Africans up for changes in the fuel price which are similar to the mid-month picture.
Beard said, “Our expectation is that diesel will increase by around 52 cents a litre, with illuminating paraffin up by 49 cents. Petrol will see only minor changes, with a drop of around two cents a litre forecast for 93 unleaded, and a rise of four cents for 95 unleaded.”
He said the international petroleum prices have remained generally flat since reaching a mid-month dip, but it was the exchange rate which caught the AA’s attention.
“From the Rand’s peak of around R14 to the US dollar on 7 September , it drew back to R13.20 by 18 September, only to give up this gain and return to the R14 level on 29 September,” Beard stated.
In their statement AA said that this month’s Rand weakness has taken its toll – without it, the petrol price would be down by nearly 30 cents a litre, and the diesel price increase would be limited to around 20 cents a litre.
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