Rand firms, oil steady, but fuel still up - AA

The recent strengthening of the Rand against the US dollar has not been enough to prevent a hefty fuel price hike for November. This is the news from the Automobile Association (AA), which was commenting on unaudited month-end fuel price data released by the Central Energy Fund (CEF).

"The Rand incurred heavy losses at mid-month in the wake of the NPA's decision to charge Finance Minister Pravin Gordhan," the AA said.

"The deficit has not been made up, even though the Rand has been slightly stronger in the last ten days. In the time being, international petroleum prices, which had been steadily rising in the first two weeks of October, have flattened out somewhat, which is encouraging."

Despite the improved stability of both oil and Rand, consumers will still be in for strain at the pumps. Petrol is set to rise by around 45 cents a litre, diesel by 64 cents and illuminating paraffin by 57 cents.

"This is substantially in line with our mid-month expectations," the Association commented. "However, we once again urge organs of government to exercise the utmost caution in dealing with economically-sensitive issues which can severely impact on working-class citizens," the AA concluded.