Ricochet News

Brace yourselves for hefty fuel price increases in September: AA

Aug 16, 2017
Brace yourselves for hefty fuel price increases in September: AA

It looks like there will be a hefty fuel price increase in September, according to a prediction by the Automobile Association (AA). This follows a 19 cents a litre increase for petrol in August.

Diesel rose by 30 cents per litre; illuminating paraffin by 35 cents and liquid propane gas by 39 cents a kilogram.

In a statement, the AA predicted a whopping increase of 63 cents per litre for petrol, 57 cents for diesel and 58 cents for illuminating paraffin. 

The association said that stronger international fuel prices and a gradually weakening Rand are to blame for the expected price increases.  

"The rand has weakened an average of 20 cents against the US dollar since the start of August," the AA said. 

"Meanwhile, international fuel product prices have remained on the higher plateau they reached towards the end of July. This means all fuel types are likely to experience substantial price increases at month end."

The increase in illuminating paraffin, in particular, is expected to have a strong negative effect on households, which rely on this fuel for cooking, lighting and heating.

"The rand's trend over the past two weeks has been towards further weakness against the US dollar, and international fuel prices have traded in a fairly narrow band, meaning we do not expect the picture to improve by month-end," the AA said.