DURBAN – Despite increased Rand strength, consumers are set to strain under a hefty fuel price hike at the petrol pumps tomorrow, Wednesday, November 2.
This is according to the Automobile Association (AA), which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund (CEF).
While Rand strength has improved and oil prices are favorable, petrol is set to rise by around 45 cents a litre with the diesel price going up by 64 cents and illuminating paraffin by 57 cents. While the price hike was largely in line with mid-month predictions, the AA has noted that fuel costs are likely a result of an unstable market caused by political tension. “We once again urge organs of government to exercise the utmost caution in dealing with economically-sensitive issues which can severely impact on working-class citizens,” said the AA.
This following Rand instability after the National Prosecuting Authority’s fraud charges on October, 11. “The Rand incurred heavy losses at mid-month in the wake of the NPA’s decision to charge Finance Minister Pravin Gordhan,” said the AA.
However, Rand strength surges have been reported since the charges were dropped. “The fraud charges were dropped yesterday,” confirmed national spokesperson for the NPA, Advocate Luvuyo Mfaku.
“Our hope is that matter will be brought to a swift conclusion,” said the AA, stating that the charges has incurred market tension which impacted on the economic outlook of the fuel price rise and fall.
“The deficit has not been made up, even though the Rand has been slightly stronger in the last ten days. In the time being, international petroleum prices, which had been steadily rising in the first two weeks of October, have flattened out somewhat, which is encouraging,” said the AA.