The recent period of fuel price reductions is set for a reversal as the weakening rand and stronger international petroleum prices combine to cause pain at the pumps.
This is according to the Automobile Association, which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.
The AA said the current data on petrol shows the hike is likely to be around 51c/l. Diesel and illuminating paraffin are currently showing possible increases of around 24c/l.
The petrol price decreased from R13,34/l inland and R12,86/l at the coast for 95 unleaded to a respective R12,17 and R11,69 currently.
“The rand’s slow, steady appreciation against the US dollar during July and August was dealt a considerable setback by the controversy surrounding the Hawks’ investigation of finance minister Pravin Gordhan,” the AA said.
“At around the same time, international petroleum prices began to appreciate, and the combined effect will be particularly significant for users of petrol.”
By 12.08pm, the and was trading at R14,26/US$ and Brent crude oil at $46,11/barrel.
“With the rand still on a weakening trend against the US dollar, the fuel price move at the end of September will depend largely on international petroleum prices,” the AA said.
“Any significant international event which leads to further oil price strength is almost certain to be bad news at the pumps for South Africans.”