Rand rout threatens fuel price stability, warns AA
15 August 2018
Substantial rand weakness could undo recent fuel price stability, the Automobile Association (AA) warned on Wednesday.
It was commenting on unaudited mid-month fuel price data released by the Central Energy Fund (CEF).
"Almost two months of modestly improving rand strength ended in a dramatic reversal as the local currency was caught up in the emerging market chaos triggered by Turkey's economic difficulties," the AA said in a statement. "Until the crisis hit, the fuel price picture for August had been flat, with data predicting modest declines in all fuel types at month-end, thanks to reasonable stability in the rand and international oil prices."
According to the AA, mid-month data suggests a fall in petrol of around 2c, with 4c and 8c drops predicted for diesel and paraffin respectively.