The fuel price yo-yo …

Rising international oil prices continue to do battle with gains in the rand/United States (US) dollar exchange rate. The results this month will see a predicted petrol price hike of up to 18 cents a litre, while diesel and illuminating paraffin are set to drop by about 12 cents, says the Automobile Association (AA).

“We are seeing a gradual, but sustained, return of strength to petroleum prices,” the AA says. “On the international market, diesel and petrol prices have risen since late February,” the Association explains.

“The appreciation of the rand against the US dollar has gone some way to offset this, meaning that diesel and illuminating paraffin are heading for reduced prices, while petrol is set to climb,” it adds.

However, the Association suggests that the situation could still change by the end of April. “Both the exchange rate and international oil prices continue to be volatile, and the month-end picture could be quite different from the current one,” it concludes.