The Central Energy Fund (CEF) has released its latest data on petrol prices and it looks like motorists will have to gear up for a slight increase in September due to the weak Rand against the Dollar.
According to the figures, 95 octane will rise by ten cents a litre, and diesel by 25 cents. Illuminating paraffin is also expected to climb by 21 cents. The only positive out of the latest figures is 93 octane, which is showing a decrease of three cents a litre.
The AA said in a statement: “The average landed price of fuel dropped across the board during August. If the Rand/US dollar exchange rate had remained flat, we could have been looking at a drop of up to 30 cents a litre for diesel and nearly 52 cents for petrol. Unfortunately, continuing Rand weakness means that prices will increase instead.”
The AA emphasises the need for policy stability to provide protection for the Rand. “There are encouraging noises coming from Finance Minister Tito Mboweni, but these must lead to concrete action. Our concern is that an ever-weakening Rand robs motorists of the opportunity to benefit from lower oil prices,” they said.
The petrol price is affected by the strength of the rand against the dollar. Other factors include the Carbon Tax Levy, Brent Crude Oil prices and the state levy on petrol and diesel. In the first two weeks of July, it showed promise, which led to lower prices in August but it seems the fluctuating Rand has not stabilised enough to encourage low prices in September.
Here are the expected petrol prices for September 2019:
Source: Capricorn Review