Johannesburg – Stronger international oil prices, and a weakening rand, will combine to drive fuel prices higher at the end of September, reports according to the Automobile Association (AA).
The month-end fuel price data released by the Central Energy Fund (CEF) shows that SA motorists and the transport industry could be affected.
‘Impact on fuel’
The AA says: “The first half of September saw the rand appreciate against the US dollar, but this trend has been reversed since September 12, with the weaker currency eating into its earlier gains.”
“The current rand trend is strongly weaker, and we expect it to have an even bigger impact on fuel users in the medium term.”
International fuel prices gradually climbed throughout September.
The AA said: “As a result, petrol is set to rise by around 30 cents, diesel by 41 cents, and illuminating paraffin by 37 cents.”
“This month’s figures show just how vulnerable South African fuel users are to stronger fuel prices and rand depreciation.
“With the USA eyeing interest rate increases, and global oil markets remaining buoyant, our view is that further fuel price hikes are almost inevitable before year end.”
(Info provided by News 24)
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