The Automobile Association of South Africa (AA) warned consumers on Tuesday that a reversal in the recent exchange rate trend may translate to higher pump prices at the end of November.
International petroleum prices declined in the first half of November, which would normally be good news for motorists.
“Unfortunately, the average exchange rate weakened by more than 20c against the US dollar over the same period, negating the lower oil price,” the AA said.
At this stage, the first half of November showed negligible under-recoveries on diesel and illuminating paraffin, with a small over-recovery on petrol.
“However, the amounts in question are around 2c per litre either way, and the fuel price is looking vulnerable,” the AA said.
“Unless international petroleum prices remain in decline, further weakening of the exchange rate will make itself felt at the pumps next month.”
-@fin24.com
© comfort for Royal Times of Nigeria Newspaper, 2013. |
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