Ricochet News

Blame Rand and oil prices - petrol price hike expected in October: AA

SEPTEMBER 15, 2016
Blame Rand and oil prices - petrol price hike expected in October: AA

Motorists should brace themselves for a petrol price increase in October, the Automobile Association (AA) said. The association was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.

It said that the current data on petrol shows the hike is likely to be around 51 cents a litre while diesel and illuminating paraffin might increase by around 24c/l.

"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 explained.

"At around the same time, international petroleum prices began to appreciate, and the combined effect will be particularly significant for users of petrol.

"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."

The AA said that any significant international event which leads to further oil price strength "is almost certain to be bad news at the pumps for South Africans".

In September, the petrol price decreased from R13.34/l inland and R12.86/l at the coast for 95 unleaded to a respective R12.17 and R11.69.