In August, motorists in South Africa had a bit of a relief from the consistent increase in petrol prices throughout 2018. The Central Energy Fund (CEF) unaudited month-end fuel price data, however, suggests that this relief is over as petrol prices are set to increase yet again in September.
Bloomberg reported that the Rand weakened last week after US President Donald Trump tweeted about South Africa’s land politics, igniting concern the country may become the next target for US sanctions.
The Rand lost its substantial ground against the US dollar increasing the landed price of fuel. This is why the petrol prices are expected to increase by between 25 and 27 cents a litre, with both 0.05% and 0.005% sulphur diesel rising by around 31 cents and illuminating paraffin by 19 cents.
This is a significant jump from last week’s prediction that showed that petrol prices would only increase by 15 cents for 93 petrol and 17 cents for 95 petrol when the Rand was trading at R14.32 against the dollar. The Rand is trading at R14.70 as of 31 August 2018.
The Automobile Association (AA) predicts that the latest increase will put 93 petrol at an all-time high of R16 per litre. “Looking to the future, the September outlook is 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,” said AA.
AA published three graphs showing 93 and 95 petrol forecast from August 2017 to September 2018:
Price of 93 octane inland since August 2017 and including 23 cents forecasted increase for September 2018.
Price of 95 octane inland since August 2017 and including 25 cents forecasted increase for September 2018
Cost for 50 litres of 95 octane inland since August 2017 and including 25 cents forecasted increase for September 2018.
The country has seen a consecutive increase in petrol for the last five months.
President Cyril Ramaphosa is yet to respond to the rising fuel prices and the Department of Energy has not published the official fuel data as yet.