Rand strength to ease petrol price hike in March – AA | Fin24

Rand strength to ease petrol price hike in March – AA

Feb 15 2017 11:29

Cape Town – The Automobile Association (AA) expects the petrol price to increase by between three and four cents a litre in March following February’s 29c price hike.

Rising international petroleum prices are being offset by a stronger rand, the AA explained. The local unit was trading 1% firmer at R13.02 to the dollar at 11:25 on Wednesday.

It was citing unaudited mid-month fuel price data released by the Central Energy Fund.

"In the first half of February, international petroleum prices increased by the equivalent of ten to twelve cents a litre, while the rand firmed by about seven cents against the US dollar," the AA said.

"As a result, the current data suggests a very modest fuel price increase of between three and four cents a litre for vehicle fuels, and a drop of around three cents a litre for illuminating paraffin."

The association said any sudden spike in oil prices or move in the rand could cause a rapid change in the situation.

"Under the circumstances, it would be speculative to pronounce on what the fuel price picture is likely to be at month end," the AA said.

aa  |  sa economy  |  currencies  |  petrol price  |  rand


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