Motorists must brace themselves for a hard time as fuel prices are likely to increase at the end of the month‚ the Automobile Association (AA) said on Friday.
The increase is driven by weak rand and stronger international oil prices‚ the AA said.
“Motorists have been fortunate in 2016 so far‚ with lower oil prices buffering the country from the weaker rand. However‚ oil has now strengthened while the rand continues to decline‚ with both contributing to the current under-recovery picture‚” the AA said.
The mid-month data shows petrol set for an increase of around 39 cents a litre‚ with stronger oil accounting for around 23 cents of the rise‚ and the weaker rand contributing 16 cents.
Diesel is faring worse‚ with a 61-cent rise on the cards‚ while illuminating paraffin is showing a 44 cents a litre increase‚ the association said.
“With oil prices rising steadily‚ South African fuel users have lost their cushion against the rand’s ongoing weakness.
“Our concern over the rand’s short-term trajectory is growing; since the start of May‚ it has depreciated from around R14.20 to the US dollar to its current level of R15.80.
“If oil continues to firm‚ rand weakness is set to have a severe impact on fuel users‚” the AA concluded. – TMG Digital
Diesel faces 61-cent price rise‚ petrol to go up 39 cents a litre
Motorists must brace themselves for a hard time as fuel prices are likely to increase at the end of the month‚ the Automobile Association (AA) said on Friday.
The increase is driven by weak rand and stronger international oil prices‚ the AA said.
“Motorists have been fortunate in 2016 so far‚ with lower oil prices buffering the country from the weaker rand. However‚ oil has now strengthened while the rand continues to decline‚ with both contributing to the current under-recovery picture‚” the AA said.
The mid-month data shows petrol set for an increase of around 39 cents a litre‚ with stronger oil accounting for around 23 cents of the rise‚ and the weaker rand contributing 16 cents.
Diesel is faring worse‚ with a 61-cent rise on the cards‚ while illuminating paraffin is showing a 44 cents a litre increase‚ the association said.
“With oil prices rising steadily‚ South African fuel users have lost their cushion against the rand’s ongoing weakness.
“Our concern over the rand’s short-term trajectory is growing; since the start of May‚ it has depreciated from around R14.20 to the US dollar to its current level of R15.80.
“If oil continues to firm‚ rand weakness is set to have a severe impact on fuel users‚” the AA concluded. – TMG Digital
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