Weak Rand could hamper August fuel prices

Weak Rand could hamper August fuel prices

The Department of Mineral Resources and Energy (DMRE) says the exchange rate between the US dollar and the Rand proves to be the stumbling block when it comes to the fuel prices for August.

Motorists waiting to fill their cars up with fuel
Motorists park their cars at a service station waiting to fill fuel/Twitter/@mailandguardian

Last week, the Automobile Association (AA) said in its mid-month report, that there could be a decrease in the price of 95 octane petrol by up to 90c per litre, while 93 octane petrol could be R1.07 a litre cheaper, diesel by 91c a litre and illuminating paraffin’s decrease of about 94c per litre.

However, DMRE spokesperson, Robert Maake, says the falling Rand has since then eroded that forecast.

"On the petroleum price side, it was looking good the prices were going down, however, the exchange rate is going the opposite direction. So, we are hoping for positive news next week Friday."

Maake adds we can expect the announcement of the fuel levies for August, on Friday.

The new fuel prices will come into effect on Wednesday, 3 August.

August will be the first month in which South Africans will be paying the full fuel price, with no further temporary relief from government.

In July, the increases saw both grades of petrol going up by R2.37 and R2.57 per litre, both grades of diesel increased by R2.30 and R2.31 per litre and Illuminating paraffin costing R1.66 more.


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