The South African rand weakened against the US dollar last week, reaching R19/$ for the first time in over two months. This is bad news for motorists in South Africa, who are already facing a massive increase at the pumps in September – between R1.30 and R2.50 per litre – thanks to rising global oil prices. The rand’s weakness is due to a stronger US dollar and local factors such as the violent taxi strike in Cape Town and the country’s disappearing trade surplus. Oil prices have also been rising, reaching a record high of $87 per barrel last week. This is due to strong demand and contained supply.
The International Energy Agency expects the oil market to remain tight in the remainder of 2023, which will support higher prices. The combination of rising oil prices and a weak rand will lead to a massive increase in fuel prices in South Africa in September.
In short, motorists in South Africa are in for a tough time in September, with fuel prices set to rise sharply. This is due to a combination of rising oil prices and a weak rand.
Read the full article here: https://businesstech.co.za/news/energy/710756/double-blow-for-petrol-prices-in-south-africa/
