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Stronger Rand and oil price responsible for May petrol price hike

28.04.2017

A stronger Rand and higher international oil prices have been identified as the main factors behind a substantial increase in the price of all grades of fuel from next month.

In a statement, the Automobile Association (AA) confirmed that the price of petrol will go up by 49 cents a litre, diesel by 33 cents and illuminated paraffin by 35 cents, with the increase however being less than forecasted earlier this month.

"After a sharp rise from the end of March, international petroleum prices have given up almost all their gains in the past two weeks. Over the same period, the Rand has unexpectedly firmed to near its pre-cabinet reshuffle levels," the statement read.

"We anticipated oil would be volatile in 2017, but we believe the Rand's strength flatters to deceive. The effects of various factors over longer timescales are what will ultimately determine the level of the Rand and, by implication, what motorists will pay for fuel in the coming months".

A short while ago the national currency was trading at R13.35 against the US Dollar, with Brent Crude Oil at $52.35 a barrel.

Article written by Autodealer
28.04.2017
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