No thanks for South Africa’s weak currency! Reports show that fuel prices are expected increase due to the weakening of the South African Rand and US dollar exchange rate increasing international fuel prices.
According to the Automobile Association (AA), fuel prices changed after applying for unaudited mid-month fuel rate data, which was issued by the Central Energy Fund (CEF).
AA also reported that international petroleum prices turned up toward higher rates. In the meanwhile, the exchange rate picture shifts towards powerlessness.
Correspondingly, by month-end, if this drift in petroleum prices continue, it may very well result in elevated fuel costs.
By the end of July, motorists must be prepared to burn holes in their pocket at fuel stations.
“There was a slight decrease in the international petrol price, but diesel and paraffin are up. Meanwhile, the rand’s slip against the US dollar added around 17 cents a litre to fuel prices across the board,” confirmed the AA.
“As a result, our mid-month prediction is that the petrol price is set to increase by up to 7 cents a litre based on the current data, with diesel up 22 cents, and illuminating paraffin 19 cents higher,” added the AA.
At noon trade on the 17th of July 2017, against the dollar, the Rand showed a lower trade level of R12.99, in the lead of Consumer Price Index data on Wednesday. On Thursday, the South African Reserve Bank expects to reveal its decision about the current rates.
“As we have previously noted, the fuel price relief of recent months is unlikely to be sustained, and motorists should be prepared to pay more at month-end,” concluded the AA.
Fuel Prices You Can Expect To Pay In August:
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