Weakness in the rand is expected to drive petrol prices higher in September, said the AA, commenting on unaudited month-end fuel price data released by the Central Energy Fund.
“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,” said the AA.
“Unfortunately, continuing Rand weakness means that prices will increase instead.”
According to the AA, 95 petrol will rise by ten cents a litre, while diesel will increase by 25 cents. However, 93 petrol will decrease by three cents per litre.
The AA added that policy stability is required so that the rand can be protected.
“There are encouraging noises coming from Finance Minister Tito Mboweni, but these must lead to concrete action,” said the AA.
“Our concern is that an ever-weakening Rand robs motorists of the opportunity to benefit from lower oil prices.”
Below is a summary of the price changes expected for September 2019:
- 95 Petrol increase of 10c per litre
- 93 Petrol decrease of 3c per litre
- Diesel increase of 25c per litre