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Fuel price outlook: Weak Rand to hurt 'vulnerable SA fuel users'

2017-10-16 12:02

PETROL VS. DIESEL: Filling up with the wrong fuel can lead to serious engine damage. Image: iStock

Johannesburg - Softer international petrol prices have been offset by a declining Rand since the start of October, while diesel and illuminating paraffin prices were slightly up, leaving them with no protection against Rand weakness. 
 
This is according to the Automobile Association (AA), commenting on unaudited mid-month fuel price data released by the Central Energy Fund.

The AA said: "The landed price of petrol has dropped by almost 20 cents a litre since the start of October. Unfortunately, Rand weakness against the US dollar saw an impact of 22 cents a litre, neutralising the fuel price gains and giving a petrol price increase of two cents a litre based on the current data."

What about the price of diesel?

The Association said diesel had taken an even bigger blow, as the international price of diesel had risen by up to six cents a litre. 
 
"Including the effects of Rand weakness, diesel is showing a potential price rise at the end of October of around 28 cents a litr," says the AA.

Vulnerable motorists

The Association comments: "The latest data continues to show how vulnerable South African fuel users are to political and economic sentiment which negatively affects the Rand. We are not ruling out a further deterioration in the fuel price picture ahead of month end," it concludes.

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