The AA puts the blame squarely on the weakness of the South African Rand, which according to them, has "left South African fuel users at the mercy of international oil markets."
The forecast for September 2019 is not great, with current indications showing a petrol increase of up to 10c/litre and diesel increasing by as much as 16c/litre. "International oil prices have dropped markedly since the beginning of the month, with crude oil having consistently traded below 60 US dollars per barrel. In recent days though, there have been signs of an uptick, which could see fuel prices come under renewed pressure," says the AA.
Worse still, the AA is predicting that there's more pain on the horizon."The South African economy is in a parlous state, with ongoing policy uncertainty and a growing debt burden. The country is ill-placed to weather its domestic challenges, let alone developments on the international front, and this leaves fuel users increasingly exposed to movements in the Rand," concludes the AA.
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