Yet another substantial fuel price rise is on the horizon. This is according to the Automobile Association (AA), which was commenting on unaudited mid-month fuel price data issued by the Central Energy Fund (CEF).
For the first time in a while, the Rand has shown reasonable strength against the US dollar during one of our reporting periods.
However, this is not enough to counter rampant increases in the international prices of fuels, which have risen by up to six percent in the past two weeks.
The current data predicts a month-end price hike of up to 35 cents a litre for petrol, 33 cents for diesel, and 29 cents for illuminating paraffin. Without the benefit of Rand strength, the increase per litre would have been up to 50 cents in some cases.
We are now seeing what we believe is the beginning of some Rand weakness, and the current picture may deteriorate by month-end.