The Automobile Association has warned South African motorists to brace for further fuel price increases thanks to continued weakness of the rand.
According to the latest figures, 95 octane is set to 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, says the AA, is that 93 octane is showing a decrease of three cents a litre.
"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,” the AA said, commenting on unaudited month-end fuel price data released by the Central Energy Fund.
“Unfortunately, continuing rand weakness means that prices will increase instead," said the Association.
The AA again emphasised the need for policy stability to provide protection for the rand.
"There are encouraging noises coming from finance minister Tito Mboweni, but these must 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 concluded.
Original article from Car