The respite in fuel prices may be at an end, with the industry warning of possible price hikes come October. The Automobile Association of South Africa (AA) noted in its mid-September fuel price outlook that the country’s “recent period of fuel price reductions is set for a reversal as the weakening Rand and stronger international petroleum prices combine at the pumps.”
The results follow an analysis of the unaudited mid-month fuel price data released by the Central Energy Fund. Petrol looks likely to increase by about 51 cents, while diesel and illuminating paraffin currently show increases of around 24 cents per litre.
“The Rand's slow, steady appreciation against the US dollar during July and August was dealt a considerable setback by the controversy surrounding the Hawks' investigation of Finance Minister, Pravin Gordhan,” the AA said. “At around the same time, international petroleum prices began to appreciate, and the combined effect will be particularly significant for users of petrol.”
The AA added: “With the Rand still on a weakening trend against the US dollar, the fuel price move at the end of September will depend largely on international petroleum prices. Any significant international event which leads to further oil price strength is almost certain to be bad news at the pumps for South Africans.”
