Buyers' advice, fuel price, Motoring News

Faraway Syria dictates more SA pump-price rises

JOHANNESBURG, Gautentg – The poison gas attack and retaliation by Britain, America and France will cause sharp increases in the landed prices of fuels in South Africa from the end of April 2018.

That, of course, will be passed on by transport companies and result in further retail price increases in your favourite stores.

Oil companies are already blaming renewed ”tensions” in Syria, according to the Automobile Association in a commentary on unaudited mid-month data released by the South African Central Energy Fund.

WEAKER RAND ISN’T HELPING

“Petroleum prices were largely flat in the first week of April but spiked sharply as tension escalated in Syria,” the AA says. “The Middle East lies near many of the world’s key oil producers and petroleum prices have historically been sensitive to instability in the region.”

The rand also weakened slightly against the US dollar in the first half of April (R17.27 today April 17) but the AA says the coming increase is pretty much accounted for by the missiles attack on Syria.

The AA told The Corner: “On the current data, the petrol price will rise by R0.41/litre, diesel by R0.48 and illuminating paraffin by R0.38. In all of these increases, the movement in the exchange rate accounts for only four cents of the rise.”

OUTLOOK COULD GET WORSE

The predicted May increase follows a R0.72/litre increase in April so the price of fuel has risen by more than a rand in two months and could increase further if the current instability in the Middle East continues.

The AA again: “Several countries have now taken a position over the Syrian civil war. If tensions increase, if the fighting drags on, the outlook for oil prices could become worse.

”South Africans should be aware that their fuel budgets might come under renewed strain in the short to medium term.”

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