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Another SA fuel price hike likely - AA

2016-10-17 11:25

BRACE YOURSELF: SA motorists will have to fork out more for fuel with an expected increase likely at the end of October. Image: iStock

Cape Town - Further fuel price hikes are likely at the end of October. This is according to the Automobile Association (AA), which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund (CEF).

"There has been a definite appreciation in oil prices since OPEC resolved to cut oil production," the AA said. 

"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."

Rise in fuel prices

The Association said that the current data was predicting petrol to increase by around 48 cents a litre, diesel by 64 cents and illuminating paraffin by 57 cents.

The motoring body added that the full effects of the Rand's recent decline in the wake of the NPA'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. 

The AA said: "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. 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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