Commenting on unaudited data released by the Central Energy Fund on Monday (April 16tH), the AA said that tensions in Syria caused by an poison gas attack on April seventh followed by a US-led missile attack on chemical factories this past weekend, as well a weaker Rand relative to the Dollar, could result in petrol rising by 41 cents a litre, diesel by 48 cents and illuminated paraffin by 38 cents come Wednesday, May 2nd.
“In all of these increases, the movement in the exchange rate accounts for just four cents of the rise. The predicted increase in May comes on the back of a 72 cents increase in April meaning, if it materialises, that fuel prices will have increased by more than one Rand in the space of two months,” the association said.
“The prolonged instability in the Middle East could drive international petroleum prices higher. Several foreign powers have now taken a position in the Syrian civil war. If tensions escalate, or the war itself drags out even further, the outlook for oil prices would become more negative”.
By mid-afternoon, the Rand was trading at R12.05 to the US Dollar with Brent Crude Oil at R72.43 a barrel.