/ 30 August 2018

Bleak outlook for fuel prices — AA

Bleak Outlook For Fuel Prices — Aa
The current inland price of 93 unleaded is R15.81 a litre. If it does increase by between 23c and 25c, as the AA predicts, the price will rise to between R16.04 and R16.06 a litre (Delwyn Verasamy/M&G)

The inland cost of 93 unleaded octane fuel could be pushed above the R16 per litre mark in September, the Automobile Association (AA) said on Thursday.

It expects that petrol will increase by between 23c and 25c a litre, with diesel rising by around 28c and illuminating paraffin by 17c in September.

“This will, for the first time, push the cost of 93 unleaded octane fuel inland above the R16 a litre mark, a significant barrier,” the AA noted.

The current inland price of 93 unleaded is R15.81 a litre. If it does increase by between 23c and 25c, as the AA predicts, the price will rise to between R16.04 and R16.06 a litre.

The inland price of 95 octane unleadedalready breached the R16 a litre price point in early July.

The AA was commenting on unaudited month-end fuel price data supplied by the Central Energy Fund. “International petroleum prices remained virtually unchanged on average during August,” it said, adding that because the rand had lost substantial ground against the US dollar, it had increased the landed price of fuel.

And the future outlook of fuel prices also remains bleak. “The rand remains under pressure and a recent spike in international oil prices could mean more pain at the pumps if it continues.”

“A return to cheap fuels doesn’t look likely and consumers will continue to be forced to economise.”

The government will release its official figures for the fuel price between Friday and Sunday. — Fin24