South Africa’s motorists can expect yet another fuel price hike to hit in September, as the rand is at its most volatile. This is according to the unaudited month-end fuel price data supplied by the Central Energy Fund (CEF).
“International petroleum prices remained virtually unchanged on average during August. But, the Rand lost substantial ground against the US dollar, increasing the landed price of fuels,” the Automobile Association (AA) said on Thursday. “This will, for the first time, push the cost of 93 unleaded octane fuel inland above the R16 a litre mark, a significant barrier. Looking to the future, the September outlook is bleak.”
As the rand remains under pressure, this could spell a bleak outlook for September as it is paired with the recent spike in international oil prices.
“A return to cheap fuels doesn’t look likely and consumers will continue to be forced to economise,” the AA said.
Graph 1
Price of 93 octane inland since August 2017, including the 23 cents forecasted increase for September 2018
Graph 2
Price of 95 octane inland since August 2017, including the 25 cents forecasted increase for September 2018
Graph 3
Cost for 50 litres of 95 octane inland since August 2017, including the 25 cents forecasted increase for September 2018.
Picture: Pixabay & AA