Slight decrease of fuel predicted
The rand is hammering the fuel price, according to the Automobile Association (AA).
The association says gains in international oil prices is reversed by the weakening rand
The AA was commenting on unaudited mid-month data released by the Central Energy Fund (CEF).
“Petrol would have been set for a drop of between 30c to 37c a litre but that has been erased by the weak rand,” the AA says.
“Instead, the current data shows that the price of 95 unleaded petrol is set to remain virtually unchanged, while a slight decrease of 7c a litre is predicted for 93 unleaded.”
Meanwhile, diesel consumers are in line for hefty price increases of up to 50c a litre, with the rand’s weakness accounting for around two-thirds of the hike.
Illuminating paraffin shows a similar picture.
“There is little certainty on where the bottom of the oil price may be, nor on the outlook for the rand/US dollar exchange rate,” the association says.
“Given the instability of the past two weeks, it is very difficult to forecast the movement of the fuel price by month end.”
