South African motorists remain caught in a tug of war between the oil price and the Rand / US dollar exchange rate. This is according to the Automobile Association (AA) which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.
“All fuel types are showing the same picture: the benefit of lower oil prices is being offset by a weaker exchange rate,” the AA said. “The nett result is that the mid-month picture shows only small changes in fuel prices where they might otherwise have been considerably lower.”
The basic price of unleaded 93 petrol was lower by almost 21 cents a litre at mid-month, but the exchange rate moved nearly 23 cents a litre in the opposite direction, meaning a potential rise of two cents a litre at the pumps. The picture is similar for diesel (up between one and three cents) and illuminating paraffin (up by five cents).
“Unleaded 95 is the only gainer, with the current data showing a drop of three cents a litre versus a potential drop of 26 cents had the exchange rate remained steady,” the Association commented.
“If Rand weakness continues to outstrip oil price gains, motorists will be paying more for fuel in December,” the AA concluded.