Motorists can anticipate a fuel hike next week, thanks mainly to a softer Rand against the US dollar.
The latest data from the Central Energy Fund (CEF), published on the 23 August, shows Petrol (95 ULP inland) rising 18 cents per litre, with 93 petrol up 16 cents a litre, while both 0.05% and 0.005% Sulphur diesel are expected to climb 18 cents a litre.
The rand halted its winning streak late last week after US President Donald Trump tweeted about South Africa’s land politics, igniting concern the country may become the next target for US sanctions, Bloomberg reported.
The local unit had previously been caught in a trap of broad emerging market frailty, while the domestic economic outlook remains gloomy with some analysts suggesting that the country may be entering a recession.
Bloomberg wrote that investors are bracing for a deterioration in relations between South Africa and the US, following president Trump’s comments, citing Goldman Sachs Group Inc.
Goldman said it is also focused on whether the country’s growth recovery remains underway, maintaining its three-month forecast for the rand at R13.50 per dollar.
In trade on Monday, the rand was 0.40% weaker against the US currency, at R14.26.
Reuters reported that US crude was slightly lower in trade on Monday, at $68.68 a barrel, with Brent crude down to $75.76 a barrel following a strong performance last week. It warned of the prospect of lower oil supply from Iran after the US withdrew from a nuclear accord it signed with Iran in 2015, while it also imposed sanctions on Iran’s oil industry and other exports.
The oil price has traded in a range since July, however, and is, therefore, likely to have minimal impact on the petrol price for September.
Petrol has climbed steadily since the beginning of the year, from R14.20 for 93 petrol, and from R14.42 for 95 gasoline.
The Department of Energy is expected to announce the petrol price figures for September later this week, which will then come into effect on September 5, 2018.