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More fuel price hikes are on their way courtesy of a weaker Rand. This is according to unaudited month-end fuel price data supplied by the Central Energy Fund (CEF).

International petroleum prices remained virtually unchanged on average during August. But, the Rand lost substantial ground against the US dollar, increasing the landed price of fuels.

Petrol is expected to increase by between 23 and 25 cents a litre, with diesel rising by around 28 cents and illuminating paraffin by 17 cents.

This will, for the first time, push the cost of 93 unleaded octane fuel inland above the R16 a litre mark, a significant barrier. Looking to the future, the September outlook is bleak. The Rand remains under pressure and a recent spike in international oil prices could mean more pain at the pumps if it continues. A return to cheap fuels doesn’t look likely and consumers will continue to be forced to economise.

Graph 1

Price of 93 octane inland since August 2017 and including 23 cents forecasted increase for September 2018

Graph 2

Price of 95 octane inland since August 2017 and including 25 cents forecasted increase for September 2018

Graph 3

Cost for 50 litres of 95 octane inland since August 2017 and including 25 cents forecasted increase for September 2018.

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