Declining Rand offsets fuel price gains – AA

Softer international petrol prices have been offset by a declining Rand since the start of October, while diesel and illuminating paraffin prices were slightly up, leaving them with no protection against Rand weakness.

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

“The landed price of petrol has dropped by almost 20 cents a litre since the start of October,” the AA said.

“Unfortunately, Rand weakness against the US dollar saw an impact of 22 cents a litre, neutralising the fuel price gains and giving a petrol price increase of two cents a litre based on the current data.”

The Association said diesel had taken an even bigger blow, as the international price of diesel had risen by up to six cents a litre.

“Including the effects of Rand weakness, diesel is showing a potential price rise at the end of October of around 28 cents a litre, with illuminating paraffin set to rise 20 cents,” says the AA.

“The latest data continues to show how vulnerable South African fuel users are to political and economic sentiment which negatively affects the Rand,” the Association comments.

“We are not ruling out a further deterioration in the fuel price picture ahead of month end,” it concludes.

Via: The Automobile Association (AA)