JOHANNESBURG - This month has seen a tug-of-war between the South African rand and international oil prices, making it difficult to predict where fuel prices are headed in September.
The most recent data released by the Central Energy Fund is pointing towards slight decreases of nine cents for petrol and seven cents in the case of diesel, thanks to the fuel price equation being positive earlier in the month. However, that equation has turned negative in recent days and if this trend continues then motorists could be looking at a slight increase in the price of fuel.
How ever the cookie crumbles though, September’s price shift is expected to be modest.
"Oil prices have slipped a little, with the landed price of fuels in South Africa showing a slight reduction in the first half of August,” the Automobile Association said.
“Over the past six weeks, oil has traded in a fairly narrow band, indicating that a more reliable plateau has been reached, absent any unexpected shocks".
The association also noted that the rand had lost some ground to the US dollar since the start of the month, with the average rate having depreciated from just over R16.80 to the dollar to nearer R17.40.
"This spells trouble for South African fuel users if it continues, but for now, the oil price is the stronger of the two forces. If this picture retains stability in the second half of the month, we expect only modest changes to the fuel price," the AA concluded.