SOUTH AFRICA - ANOTHER FUEL INCREASE MAY BE ON THE CARDS FOR SEPTEMBER

South African motorists are likely to pay a little more for petrol and diesel from the beginning of September, and this time the rand is solely to blame.

Based on mid-month fuel price data from the Central Energy Fund, the Automobile Association is predicting a petrol price increase in the region of 10 cents a litre, while diesel is likely to go up by around 16 cents and illuminating paraffin by 12 cents.

This would raise the inland price of petrol to R15.82 for 93 Unleaded and R16.02 for 95 Unleaded, while those at the coast would pay R15.38 for the latter.

Were it not for the plummeting rand, South Africans would have been looking forward to a likely fuel price reduction next month as international oil prices have actually dropped significantly since the beginning of the month.

However, the AA warns that in recent days there have been signs of an uptick, which would see fuel prices coming under renewed pressure.

"We are concerned that there may be worse to come," the association said.

"The South African economy is in a parlous state, with ongoing policy uncertainty and a growing debt burden. The country is ill-placed to weather its domestic challenges, let alone developments on the international front, and this leaves fuel users increasingly exposed to movements in the Rand".

South Africa’s petrol prices are currently just over a rand less than the all-time high recorded in October 2018.

Although fuel prices dropped markedly towards the end of last year, from R16.49 in October (for 95 Unleaded at the coast) to R13.43 in January, prices have slowly crept up since then, to the current level of R15.28.

via - IOL