The Automobile Association has warned that South Africa should brace for a “hefty jump” in the price of all fuel types at the end of August.
Stronger international fuel prices and a gradually weakening rand were pointing to the fresh price increase, the AA said, commenting on unaudited mid-month fuel price data released by the Central Energy Fund.
“The rand has weakened an average of 20 cents against the US dollar since the start of August,” the Association said.
“Meanwhile, international fuel product prices have remained on the higher plateau they reached towards the end of July. This means all fuel types are likely to experience substantial price increases at month end.”
Given this, the AA’s mid-month fuel outlook prediction is that petrol is expected to climb by 63 cents a litre, diesel by 57 cents and illuminating paraffin by 58 cents.
“The rand’s trend over the past two weeks has been towards further weakness against the US dollar, and international fuel prices have traded in a fairly narrow band, meaning we do not expect the picture to improve by month-end,” the AA added.
“Fuel users should definitely expect to pay more for fuel from the start of September,” it concluded.
