Further fuel price hikes are likely next month, according to the Automobile Association (AA), based on unaudited mid-month fuel price data released by the Central Energy Fund (CEF).
“There has been a definite appreciation in oil prices since OPEC (the Organisation of Petroleum Exporting Countries) resolved to cut oil production, said the AA.
“The international price of petrol has climbed from 136 US cents per gallon to 148 cents since 27 September. Despite the Rand's gradual appreciation against the US dollar over the same period, there has been a substantial impact on what South Africans are likely to be paying at the pumps next month."
The association said that the current data predicts petrol to increase by around 48 cents a litre, diesel by 64 cents and illuminating paraffin by 57 cents.
The motoring body added that the full effects of the Rand’s recent decline, due the National Prosecuting Authority’s decision to charge Finance Minister, Pravin Gordhan, with fraud, had not yet been factored in to the data, and could be expected to put further pressure on fuel prices before the end of the month.
The AA concluded, “Our hope is that matter will be brought to a swift conclusion to reduce the tensions our markets are currently experiencing, and to bring more stability to our economic outlook.”
