SA DRIVERS TO DIG DEEP: The weakening Rand is contributing to fuel-price increases in 2016. Image: AFP
Johannesburg - Only oil's
ongoing lower price is protecting South African road users against the rampant
Rand/US dollar exchange rate, reports the Automobile Association.
The AA analysed unaudited month-end (January 2016) data released by the Central Energy Fund (CEF).
The AA commented: "The
average exchange rate used in the fuel price calculation has breezed past
R16.40 to the dollar, approximately 25% lower than at the same time last
rate had held to its January 1 level, petrol would have dropped by up to 45
cents a litre a litre. Despite the saving from the oil price, the petrol price
is set to increase by three to six cents."
Are fuel increases on the way?
The AA said: "As we
have previously commented, the weak oil price means South African motorists
have yet to be exposed to the full effect of the Rand's slump.
"If the oil price turns the corner without some recovery from the
Rand, substantial fuel price increases are likely."