Ricochet News

Declining rand could have an impact as oil rebounds

Declining rand could have an impact as oil rebounds

The Automobile Association (AA) has warned that the rand’s continuing decline against major international currencies could result in the wiping out of any significant decreases in the petrol price.

In a statement, the organisation said the recent upturn in oil prices and the weaker rand, could lead to petrol prices coming down by a mere seven cents per litre for October instead of the projected 30-37 cent per litre. It however warned that a hefty increase in the price of diesel and illuminating paraffin could be expected.

“There is little certainty on where the bottom of the oil price may be, nor on the outlook for the Rand / US dollar exchange rate,” the statement read.

“Given the instability of the past two weeks, it is very difficult to forecast the movement of the fuel price by month end”.

A short while ago (14:35), the national currency was trading at R13.68 against the US Dollar with Brent Crude Oil coming in at $48.08 a barrel.