A coalition of commodity prices, the implementation of power cuts and an increase in fuel prices has added significant risk to the markets.
According to reports, the rand has now taken a heavy knock against the US dollar as it continues to weaken. The rand now trades R15.50 to the US dollar. Analysts indicated that the rand is at its lowest since the beginning of March this year as data also indicates that the consumers should be prepared to take the punch as the standard of living will cost more, ENCA reported.
Also read: Sharp fuel price hike for South Africa on Wednesday
The weakened rand has also increased the fuel price as the Automobile Association (AA) said in a statement that the November fuel price hikes announced by the Minister of Energy on Sunday, November 1 will be disastrous for fuel users and consumers across the board, as per IOL.
According to the AA a perfect storm of demand imbalances, refinery costs, natural gas price hikes and Rand weakness would see the petrol price close in on R20 a litre in the runup to Christmas.
“Diesel will be up by a remarkable R1.48 a litre, illuminating paraffin is set to jump by a staggering R1.45 a litre, and petrol will rise by R1.21 a litre for an inland price at the pumps of R19.54 for a litre of ULP 95.
“The price of 95ULP in Polokwane is already testing the R20/l mark, with fuel there now coasting R19.97/l,” the AA said.
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