Battered currency pushes fuel higher
More fuel price hikes are on their way courtesy of a weaker rand. This is according to the Automobile Association (AA), which was commenting on unaudited month-end fuel price data supplied by the Central Energy Fund (CEF).
"International petroleum prices remained virtually unchanged on average during August," the association says. “But the rand lost substantial ground against the US dollar, increasing the landed price of fuels."
Petrol is expected to increase by between 23 and 25 cents a litre, with diesel rising by around 28 cents and illuminating paraffin by 17 cents.
“This will push the cost of 93 unleaded octane fuel inland above the R16 a litre mark for the first time - a significant barrier,” the AA notes. he AA says the September outlook is bleak. "The rand remains under pressure and a recent spike in international oil prices could mean more pain at the pumps if it continues. A return to cheap fuel doesn't look likely and consumers will continue to be forced to economise."