Fuel price set to increase in October – AA
Rising oil prices and a weakening rand behind the spike.
The SA Petroleum Industry Association (Sapia)’s operations resumed after last week’s unrest across KwaZulu-Natal, Gauteng and parts of Mpumalanga. Picture: Neil McCartney
The Automobile Association (AA) predicts that fuel prices will increase at the end of September.
“We have noted oil prices spiking above $75 (R1097.33) a barrel in recent days, and the upward trend has been evident throughout September,” said AA.
“Brent crude, in particular, has increased by $10 a barrel in less than a month, and the Mediterranean and Singapore prices used in South African fuel pricing are also on the advance. This trend could point towards substantial future fuel price increases,” it adds.
The rand-US dollar exchange rate was flat for much of the first half of September, with movements in a fairly limited range.
However, recent weakening, combined with higher international petroleum prices, could push fuel prices into negative territory by month-end.
“Until government manages domestic policy more effectively, the Rand will continue to expose South Africans to the full brunt of bullish oil prices, meaning South Africans are not getting fuel as cheaply as they could be,” says the Association.
