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SA fuel price: Exchange rate woes continue

2016-01-28 13:47

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).

Rand slump

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 year."

"If the 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."

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