JOHANNESBURG, Gauteng – Another substantial fuel-price increase is expected at the end of October 2018, according to the Automobile Association.
The motoring organisation explained: “International oil prices remain stubbornly high and it is possible that current tensions involving Saudi Arabia, one of the world’s most prolific oil producers, could place more pressure on fuel prices.
”More welcome is news is that the currency (SA rand) is working in South African’s favour against the US dollar.”
HERE’S THE FORECAST
Petrol prices could increase by R0.40/litre, diesel by R0.70 and illuminating paraffin by R0.65. However, the AA said these increases should be seen against the Department of Energy’s proposal to set a maximum price for the sale of 93 octane unleaded and lead-replacement fuels.
”This will allow fuel retailers to set their prices below the maximum indicated by the state and, depending on the margins, ease the burden on vehicle owners.”
The AA says the country cannot continue to be hammered by large fuel-price increases without severe economic knock-on. “The effect on bus and taxi operations could lead to fare rises above commuters’ ability to pay.’
“A stronger and more stable currency is South Africa’s only defence against the vagaries of the international oil price.”