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The Automobile Association (AA) does not regulate or adjust fuel prices in South Africa, nor does it have any input in how the fuel prices are calculated.

Fuel prices are officially calculated and adjusted on the first Wednesday of every month by the Department of Mineral Resources and Energy. The DMRE is the only entity which regulates, sets, and adjusts fuel prices in South Africa.

As a public service to consumers, the AA publishes two fuel price outlooks monthly – one mid-month, and one at the end of the month before the official announcement by the DMRE is made, usually two or three days before the first Wednesday of the new month.

The AA publishes these forecasts to alert the public of looming changes to fuel prices, and the reasons for the changes. The AA relies on publicly available fuel price data from the Central Energy Fund (CEF) to compile its forecasts – a fact which is mentioned in every fuel price outlook issued by the AA. Along with the information relating to fuel price adjustments and providing context for them, the Association often provides useful tips to road users on how to conserve fuel, and tips for saving on fuel expenses.

Fuel prices are set to increase at month end. This is according to the Automobile Association (AA) which was commenting on recent exchange rate and commodities data.

“We have noted oil prices spiking above $75 a barrel in recent days, and the upward trend has been evident throughout September. Brent Crude in particular has increased by $10 a barrel in less than a month, and the Mediterranean and Singapore prices used in South African fuel pricing are also on the advance. This trend could point towards substantial future fuel price increases,” it adds.

The Rand/US dollar exchange rate was flat for much of the first half of September, with movements in a fairly limited range. However, recent weakening, combined with higher international petroleum prices, could push fuel prices into negative territory by month-end.

“Until government manages domestic policy more effectively, the Rand will continue to expose South Africans to the full brunt of bullish oil prices, meaning South Africans are not getting fuel as cheaply as they could be,” says the Association.

NOTE:

The AA is unable to provide a more detailed outlook for the price movements of fuel for October beyond fluctuations as indicated above as the Department of Mineral Resources and Energy is withholding the daily fuel updates it publishes on the website of the Central Energy Fund (CEF), and through daily emails.

The DMRE has indicated that going forward it will only publish this update at the end of the month at which time the Association will be better placed to comment further.

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