South African fuel prices will increase in September, according to the AA, which was commenting on unaudited month-end fuel price data released by the Central Energy Fund.
“International oil prices have dropped markedly since the beginning of the month, with crude oil having consistently traded below 60 US dollars per barrel,” said the AA.
“In recent days though, there have been signs of an uptick, which could see fuel prices come under renewed pressure.”
However, due to the rand plummeting in value in recent weeks, the AA believes that what could have been a fuel price reduction has now turned into an across-the-board increase.
The AA predicts that the price of petrol will increase by 10 cents per litre, and diesel by 16 cents per litre.
There is more bad news for South African motorists, as the AA believes that the worst is yet to come.
“The South African economy is in a parlous state, with ongoing policy uncertainty and a growing debt burden,” said the AA.
“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.”
Below is a summary of the price changes expected for September 2019:
- Petrol price increase of 10c per litre
- Diesel price increase of 16c per litre