“The Rand declined early in September against the US dollar, but has since strengthened,” the Automobile Association states.
“Only around 8c of this month’s increase will come from Rand weakness, but it is oil strength which has been the major contributor.”
Read: Drop in fuel prices lower than expected by AA
Petrol is expected to increase by between 43c to 45c a litre, diesel by 23c, and illuminating paraffin by 22c.
“Time will tell how stable the Rand / US dollar exchange rate is likely to be, but we note with interest the agreement reached by OPEC’s members to limit oil production, the first such cut since 2008,” the AA states.
The association adds that the decision by OPEC (the Organisation of Petroleum Exporting Countries) to trim output by up to 700 000 barrels per day could, if accepted at the group’s November meeting, have the effect of stimulating international petroleum prices, but may also lead to increased production by non-OPEC members.
Read: Fuel prices continue to rise
“If the Rand remains volatile, South Africans will be more exposed to changes in the oil price, and we advise motorists to continue to economise in the absence of a clear picture of what effect the OPEC decision may have,” the AA concludes.
