Stronger international petroleum prices have contributed to the bulk of the fuel price increase taking effect from Wednesday.<\/p>\n
This is according to the Automobile Association (AA), which was commenting on month-end data released by the Central Energy Fund (CEF).<\/p>
\u201cThe Rand declined early in September against the US dollar, but has since strengthened,\u201d the AA said.<\/p>\n
\u201cOnly around eight cents of this month\u2019s increase will come from Rand weakness.<\/p>
\u201cIt is oil strength which has been the major contributor.\u201d<\/p>\n
Petrol is expected to increase by between 43 to 45 cents a litre.<\/p>\n
While diesel will increase by 23 cents, and illuminating paraffin by 22 cents.<\/p>\n
\u201cTime will tell how stable the Rand\/US dollar exchange rate is likely to be, but we note with interest the agreement reached by OPEC\u2019s members to limit oil production, the first such cut since 2008,\u201d the AA said.<\/p>\n
The Association said the decision by OPEC (the Organisation of Petroleum Exporting Countries) to trim output by up to 700 000 barrels per day could, if accepted at the group\u2019s November meeting, have the effect of stimulating international petroleum prices, but may also lead to increased production by non-OPEC members.<\/p>\n
\u201cIf the Rand remains volatile, South Africans will be more exposed to changes in the oil price, and we advise motorists to continue to economise in the absence of a clear picture of what effect the OPEC decision may have,\u201d the association concluded.<\/p>\n