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Cape Town - Further fuel price hikes are likely at the end of October, with current data predicting petrol to increase by around 48 cents a litre, diesel by 64c and illuminating paraffin by 57c, the Automobile Association (AA) warned on Monday.
"Despite the rand's gradual appreciation against the dollar since late September, there has been a substantial impact on what South Africans are likely to be paying at the pumps next month," the AA said, commenting on unaudited mid-month fuel price data released by the Central Energy Fund (CEF).
"There has been a definite appreciation in oil prices since the Organisation of the Petroleum Exporting Countries (Opec) resolved to cut oil production," explained the AA. The international price of petrol has climbed from 136 US cents per gallon to 148 cents since 27 September."
In the AA's view, the full effects of the rand's recent decline in the wake of the decision by the National Prosecuting Authority (NPA) to summon Finance Minister Pravin Gordhan to court have not yet filtered into the data. It could be expected to put further pressure on fuel prices before month end.
"Our hope is that the matter will be brought to a swift conclusion to reduce the tensions our markets are currently experiencing, and to bring more stability to our economic outlook," said the AA.
"This is essential to minimise further weakening of the rand/dollar exchange rate, which directly affects the price South Africans pay for imported commodities such as fuel."
At the beginning of October the Department of Energy increased the retail price of petrol (93 octane) by 44c per litre and that of 95 octane by 43c per litre.
The wholesale price of diesel (0.05% sulphur and 0.005% sulphur) increased by 23c per litre, while the wholesale price of illuminating paraffin increased by 22c per litre.
The single maximum national retail price of illuminating paraffin (SMNRP) increased by 30c per litre and the maximum retail price for LPGAS went up by 58c per kilogramme.
