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.<\/p>\n
The AA noted that 95 octane is expected to rise by 10 cents a litre, and diesel by 25 cents.<\/p>\n
Illuminating paraffin is also expected to climb by 21 cents.<\/p>\n
The only positive out of the latest figures is 93 octane which shows a decrease of three cents a litre.<\/p>\n
“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.<\/p>\n
The group emphasised the need for policy stability to provide protection for the rand.<\/p>\n
“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.<\/p>\n
The table below outlines the expected price changes for September:<\/p>\n
| Fuel (Inland)<\/th>\n | August Official<\/a><\/th>\n | September Expected<\/th>\n<\/tr>\n |
|---|---|---|
| 95 Petrol<\/td>\n | R15.92<\/td>\n | R16.02<\/td>\n<\/tr>\n |
| 93 Petrol<\/td>\n | R15.72<\/td>\n | R15.69<\/td>\n<\/tr>\n |
| 0.05% Diesel (wholesale)<\/td>\n | R14.33<\/td>\n | R14.58<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n \n |