Fuel price rise as oil outmuscles Rand
South Africa – Global oil prices strode higher during July, setting the stage for fuel price increases in August despite a surprise upside from the Rand. This is according to the Automobile Association (AA) which was commenting on unaudited month-end fuel price data released by the Central Energy Fund.
The Rand gained eight cents against the US dollar during July and the average exchange rate has firmed to below R16.90. With so much negative news surrounding the economy, the Rand's firmer trend is welcome, but we would like to see the government support this trend for economic policy certainty.
The retail price of petrol in South Africa will increase by five cents to R15.17 a litre in the economic hub of Gauteng, while the wholesale price of diesel will rise by 45 cents to R13.49, according to the Department of Mineral Resources and Energy. The retail price of illuminating paraffin will go up by 39 cents to R7.43 in Gauteng.
AA press release extracts
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