Ricochet News

“Falling Rand to have first effect on motorist come January” - AA

By Charl Bosch - Dec 15, 2015
“Falling Rand to have first effect on motorist come January” - AA

The Automobile Association (AA) has warned that motorist can expect to feel the effects of former Finance Minister Nhlanhla Nene surprise removal at the pumps next month.

In a statement, the organisation said the price of petrol is likely to remain unchanged, although a decrease of 20 cents a litre could have been expected if the Rand had remained stable against the US Dollar. The price of diesel is however forecasted to drop by 50 cents a litre and paraffin by 20 cents a litre.

“Although the Rand has recovered some of its losses, the current flattering fuel price picture is solely due to continued weak oil prices," the statement read.

“We are however cautious of pinning our hopes on further drops in the oil price. We don't think the Rand's recent weakness has yet been fully reflected in the fuel price, and if oil prices tick up, the results could make for a very bleak new year for South African motorists and commuters”.

A short while ago, the rand was trading at R15.03 against the US dollar with Brent Crude Oil coming in at $39.03 a barrel.