Petrol party turns sour with expected 51c price hike

Cape Town - The recent period of fuel price reductions is set for a reversal as the weakening rand and stronger international petroleum prices combine to cause pain at the pumps.

This is according to the Automobile Association (AA), which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.

The AA said the current data on petrol shows the hike is likely to be around 51 cents a litre. Diesel and illuminating paraffin are currently showing possible increases of around 24c/l.

The petrol price decreased from R13.34/l inland and R12.86/l at the coast for 95 unleaded to a respective R12.17 and R11.69 currently.

"The rand's slow, steady appreciation against the US dollar during July and August was dealt a considerable setback by the controversy surrounding the Hawks' investigation of Finance Minister Pravin Gordhan," the AA said.

"At around the same time, international petroleum prices began to appreciate, and the combined effect will be particularly significant for users of petrol."

By 12:08 the and was trading at R14.26/$ and Brent crude oil at $46.11 a barrel.

"With the rand still on a weakening trend against the US dollar, the fuel price move at the end of September will depend largely on international petroleum prices," the AA said.

"Any significant international event which leads to further oil price strength is almost certain to be bad news at the pumps for South Africans."

Read Fin24's top stories trending on Twitter:

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
17.63
+1.2%
Rand - Pound
20.24
-0.2%
Rand - Euro
17.61
-0.4%
Rand - Aus dollar
11.46
+1.4%
Rand - Yen
0.12
+0.8%
Gold
1,725.57
+1.5%
Silver
21.05
+1.7%
Palladium
2,312.00
+3.9%
Platinum
934.00
+3.3%
Brent Crude
88.86
+4.2%
Top 40
59,840
+3.3%
All Share
66,313
+3.2%
Resource 10
64,568
+4.5%
Industrial 25
80,073
+3.2%
Financial 15
14,053
+1.7%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
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