Fuel prices expected to increase drastically in December
As the months go on South African motorists face yet another massive fuel price increase in December, says Hanré Rossouw, portfolio manager at Investec.
It is stated that an increase in the global oil price – to 2-year highs of $64 dollars per barrel – would compound pressures seen in the South African US dollar exchange rate, and push the price of petrol up by around 60 cents in December.
South Africa has seen successive fuel price increases in the past four months, as the South African economy continued to struggle.
According to the Automobile Association, the situation will be continued by ongoing political uncertainty in the country, with the ANC’s elective conference in December increasing the volatility of the local currency. Following a recent cabinet reshuffle by President Jacob Zuma, the rand weakened to over R14 to the dollar, which will have an impact on December’s fuel prices.