Fuel price set for another hike

Petrol is set to increase by around 48 cents a litre‚ diesel by 64 cents and illuminating paraffin by 57 cents at the end of October‚ the Automobile Association (AA) predicts.

Commenting on unaudited mid-month fuel price data released by the Central Energy Fund (CEF)‚ the AA explained: “There has been a definite appreciation in oil prices since OPEC resolved to cut oil production“.

“The international price of petrol has climbed from 136 US cents per gallon to 148 cents since 27 September. Despite the Rand’s gradual appreciation against the US dollar over the same period‚ there has been a substantial impact on what South Africans are likely to be paying at the pumps next month.”

The motoring body also cautioned that the full effects of the Rand’s recent decline in the wake of the National Prosecuting Authority’s decision to charge Finance Minister‚ Pravin Gordhan‚ with fraud had not yet filtered into the data‚ and could be expected to put further pressure on fuel prices before month end.

“Our hope is that matter will be brought to a swift conclusion to reduce the tensions our markets are currently experiencing‚ and to bring more stability to our economic outlook‚” the AA said.

“This is essential to minimise further weakening of the Rand / US dollar exchange rate‚ which directly affects the price South Africans pay for imported commodities such as fuel.

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