Weakness in the rand is expected to drive fuel prices higher in September, according to the Automobile Association (AA), commenting on unaudited month-end fuel price data released by the Central Energy Fund.
The AA noted that 95 octane is expected to rise by 10 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 is 93 octane which shows 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. Unfortunately, continuing Rand weakness means that prices will increase instead,” the AA said.
The group 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 said.
The table below outlines the expected price changes for September:
|Fuel (Inland)||August Official||September Expected|
|0.05% Diesel (wholesale)||R14.33||R14.58|