The Automobile Association has warned South African motorists that more fuel price hikes are on their way courtesy of a weaker rand.
“International petroleum prices remained virtually unchanged on average during August,” the AA said in a statement, commenting on unaudited month-end fuel price data supplied by the Central Energy Fund.
“But the rand lost substantial ground against the US dollar, increasing the landed price of fuels.”
The AA added that 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, for the first time, push the cost of 93 unleaded octane fuel inland above the R16 a litre mark, a significant barrier,” the Association noted.
Looking further ahead, the AA said the September outlook was 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 fuels doesn’t look likely and consumers will continue to be forced to economise.”