Weak rand could affect fuel increase in May
The Automobile Association of South Africa says motorists could cough up more at the pumps from May due to the depreciation of the rand against the US dollar.
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The AA says the rand's weakness contributed three quarters of the expected fuel price increases with hikes in international oil prices accounting for the balance.
The AA is predicting a 55 cents a litre increase for petrol. Diesel could go up by around 39 cents.
Spokesperson, Layton Beard says the currency has fluctuated against the dollar.
"If the rand had stayed on its previous upward course against the US dollar - it may have been strong enough to overcome the significant increases in international petroleum prices which occurred at the same time resulting in smaller or no increases in May. So, unfortunately the rand against the US dollar slipping has been a major factor in the increases we are predicting," he said.
Meanwhile, on the currency side today, it was more a case of Pound strength than Rand weakness. Listen to our Monday evening ECR Market Watch wrap below.