Across-the-board losses from the exchange rate are set to hit fuel consumers at the end of October. This is according to the Automobile Association (AA), commenting on unaudited month-end fuel price data released by the Central Energy Fund (CEF).
“The landed price of petrol actually dropped by around 18 cents a litre in October, while the landed price of diesel showed a slight increase of five cents,” the AA said.
“But the Rand slipped around 22 cents to the US dollar, meaning all grades of fuel will be more expensive in November.”
Petrol will rise a modest four cents a litre, but diesel users will pay up to 26 cents more, with illuminating paraffin set to rise by 18 cents.
“Fuel prices have not yet felt the full effect of the Rand’s weakening in the wake of Finance Minister Malusi Gigaba’s Medium Term Budget Policy Statement,” the AA comments.
“We expect that impact to immediately start feeding into the next month’s fuel price calculations, meaning South Africans should prepare for further fuel price hikes before Christmas,” the Association concludes. – AASA