Double blow for petrol price

Cape Town - Fuel price increases at the end of May are set to be driven by both the weak rand and stronger international oil prices, the Automobile Association (AA), cautioned on Friday.

It was commenting on unaudited mid-month fuel price data released by the Central Energy Fund (CEF).

"Motorists have been fortunate in 2016 so far, with lower oil prices buffering the country from the weaker rand," the AA said.

"However, oil has now strengthened while the rand continues to decline, with both contributing to the current under-recovery picture."

By 12:40 the rand was trading at R15.73/$ and Brent crude at $49.20 a barrel.

The mid-month data shows petrol set for an increase of around 39 cents a litre, with stronger oil accounting for around 23c of the rise, and the weaker rand contributing 16c. Diesel is faring worse, with a 61c rise on the cards, while illuminating paraffin is showing a 44c a litre increase.

"With oil prices rising steadily, South African fuel users have lost their cushion against the rand's ongoing weakness," the AA commented.

"Our concern over the rand's short-term trajectory is growing; since the start of May, it has depreciated from around R14.20 to the US dollar to its current level of R15.80. If oil continues to firm, rand weakness is set to have a severe impact on fuel users," the AA warned.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
Rand - Pound
Rand - Euro
Rand - Aus dollar
Rand - Yen
Brent Crude
Top 40
All Share
Resource 10
Industrial 25
Financial 15
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders