The AA of SA is forecasting an increase in the price of petrol, diesel and paraffin as we head towards the end of September 2021. Here’s what you need to know.

The Automobile Association of South Africa posts a regular fuel price update twice a month, based on what the exchange rate and international oil price is doing. Usually, the estimated amounts of pretty accurate, giving consumers time to plan ahead.

However, the month of September 2021 has seen some extreme volatility. So much so, the AA is unable to post a more detailed outlook and prediction, which isworrying. Based on what the data has shown, we know that fuel prices are set to increase at the end of September 2021.

“We have noted oil prices spiking above $75 a barrel in recent days, and the upward trend has been evident throughout September. Brent Crude in particular has increased by $10 a barrel in less than a month, and the Mediterranean and Singapore prices used in South African fuel pricing are also on the advance. This trend could point towards substantial future fuel price increases,” it adds.

The exchange rate between the South African Rand and the US dollar was flat for most of this month, however some very recent weakening combined withhigher international petroleum prices, could push fuel prices into negative territory. “Until government manages domestic policy more effectively, the Rand will continue to expose South Africans to the full brunt of bullish oil prices, meaning South Africans are not getting fuel as cheaply as they could be,” says the AA.

At this stage, it is fair to assume we’re in for a fuel price increase as we go into October 2021. We’ll have detailed amounts of this increase in just over a week’s time.

Further Reading

SA Petrol Price– Where Does Our Money Go?

5 Ways to Beat the Fuel Price Hike

Most Fuel Efficient Budget Cars in SA

Most Fuel-Efficient Double-Cab Bakkies in SA

5 Fuel-Saving Car Features & How They Work

Most Fuel Efficient Budget Cars in SA

Most Fuel Efficient Diesel Cars in SA

Most Fuel Efficient Petrol Cars in SA