SOUTH AFRICANS FACE HIGHER PETROL PRICES FROM FALL IN RAND’S EXCHAMGE RATE

South African commuters are set to face another fuel price hike next month after the Rand took a beating on foreign exchange markets in reaction to a decision by the National Prosecuting Authority (NPA) to charge Finance Minister Pravin Gordhan with fraud as well as a rise in the price of Brent crude oil.

The Automobile Association of South Africa said here Monday that according to current predictions, prices of petrol could increase by around 48 cents per litre, diesel by 64 cents and illuminating paraffin by 57 cents.

Association spokesman Layton Beard says the NPA’s case against Gordhan was having a negative effect on markets. Despite the rand’s gradual appreciation against the US dollar, there has been a substantial impact on what South Africans are likely to be paying at the pumps next month,” he adds.

“We also believe that the full effects of the rand’s recent decline in the wake of the NPA’s decision to charge Pravin Gordhan with fraud has not yet filtered into the data and could be expected to put further pressure on fuel prices before month-end.”

After months of speculation, Gordhan was last week charged with fraud by the NPA for approving an early retirement package for his then deputy during his time as head of the South African Revenue Services (SARS).

Source: Nam News Network