Weak rand behind likely fuel price hikes in September – AA
Weakness in the rand is expected to drive a fuel price spike in September, the Automobile Association (AA) has said.
In a statement issued on Wednesday afternoon, the AA commented on unaudited month-end fuel price data released by the Central Energy Fund (CAF).
"According to the figures, 95 octane will rise by ten cents a litre, and diesel by 25 cents. Illuminating paraffin is also expected to climb by 21 cents. The only positive out of the latest figures is 93 octane which is showing a decrease of three cents a litre," the AA said.
"The average landed price of fuel dropped across the board during August. If the Rand/US dollar exchange rate had remained flat, we could have been looking at a drop of up to 30 cents a litre for diesel and nearly 52 cents for petrol. Unfortunately, continuing Rand weakness means that prices will increase instead," it added.
It called for policy stability to encourage greater currency stability, saying there were "encouraging noises" coming from Finance Minister Tito Mboweni, but that these should "lead to concrete action".
" Our concern is that an ever-weakening Rand robs motorists of the opportunity to benefit from lower oil prices," the AA said.
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