The Automobile Association has predicted that stronger international oil prices and a weakening rand will combine to drive South Africa’s fuel prices higher at the end of September.
The AA was commenting on unaudited month-end fuel price data released by the Central Energy Fund.
“The first half of September saw the rand appreciate against the dollar, but this trend has been reversed since September 12, with the weaker currency eating into its earlier gains,” the AA said in a statement.
“The current rand trend is strongly weaker, and we expect it to have an even bigger impact on fuel users in the medium term.”
Meanwhile, international fuel prices continued their run, having gradually climbed throughout September.
“As a result, petrol is set to rise by around 30 cents, diesel by 41 cents and illuminating paraffin by 37 cents,” the Association said.
“This month’s figures show just how vulnerable South African fuel users are to stronger fuel prices and rand depreciation.”
“With the US eyeing interest rate increases, and global oil markets remaining buoyant, our view is that further fuel price hikes are almost inevitable before year end,” the AA concluded.
