Come September – More Pain at the Pumps
Motorists, business owners and mini-bus taxi services – already feeling the financial pinch of the rising cost of fuel, vehicle maintenance and servicing and soaring cost-of-living expenses – can expect a double whammy at the petrol stations when prices escalate in September.
With the rand on the back foot at R19 to the USD, ending a weaker 2.5% against the American greenback, petrol and diesel customers can brace themselves for a bigger increase at the pumps in the new month –ranging from R1.30 and R2.50 per litre.
The rising global prices of oil is set to have a huge impact on motorists and household consumers reeling under the higher cost of food, beverages and municipal costs.
The Bureau for Economic Research reports that the SA currency lost between 2% and 2.5% against major currencies recently and the mid-week the currency edged to R19 for an American dollar. Soaring oil cost at 87 USD per barrel last week and currently at 86 USD a barrel is bound to hit motorists the hardest in their pockets.
The International Energy Agency (IEA) says the demand for oil demand had peaked at a record high in June based on the strong overseas summer air travel, hike in oil consumption for power generation and a sharp increase in petrochemical activity in China. At the same time, however, OPEC production cuts created a very tight market.
The Central Energy Fund predicts a price hike of R1.30 per litre for petrol and R2.53 per litre for diesel. The price of petrol and diesel hovers around R2.20-plus per litre at the moment.
