Oil down but Rand pummels fuel price

Oil down but Rand pummels fuel price


Fuel prices look set for another jump going into July based on the unaudited mid-month fuel data released by the Central Energy Fund (CEF).


Since the start of June, the Rand has steadily weakened against the US dollar, with the average cost per dollar having climbed from around the R12.50 mark to nearly R13.00. Fortunately, international oil prices retreated over the same period, and have had a very small impact on the figures.


The current data forecast a rise of around 32 cents a litre for petrol, 30 cents for diesel, and 22 cents for illuminating paraffin.


Almost all of the increase is due to Rand weakness and the picture would have looked very much worse if international oil prices had not come down over the past two weeks.


With the volatility of oil markets over the last six weeks, an increase in the oil price cannot be ruled out in the short to medium term, and we once again advise all motorists to avoid unnecessary journeys, make use of carpooling, and practice economical driving techniques.