Fuel price set to rise as Rand weakens
Political tensions in the Middle East continue to affect the price of oil.
Motorists will be pleased to hear that the price of 95 Unleaded is set to decrease by eight cents a litre come February however, users of 93 Octane petrol, diesel and illuminating paraffin will be paying more at the pumps.
The Automobile Association of South Africa (AA) was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.
According to the AA, 93 Octane is showing a one cent-a-litre rise, with 13 cents for both grades of diesel, and ten cents for illuminating paraffin.
“International oil prices surged by nearly two dollars a gallon in late December 2019 before beginning a recovery which was halted by the recent tensions between the USA and Iran” the AA said.
“In the first week of January 2020, the two dollar mark was tested again, albeit with a slight recovery since.”
The Rand had also further weakened from its low of R13.95 to the USD at the end of December in comparison to its close on Tuesday, January 14 at R14.40.
“This rise means bad news for fuel users and comes at a time when many consumers are already feeling the financial pinch,” said the AA.
The AA said political tensions in the Middle East, one of the world’s richest oil-producing regions, were likely to affect the price of oil.
“The Rand’s performance will be key in keeping any further oil hikes at bay.”
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