South African consumers may be facing tough times ahead as the weaker Rand dampens hopes for a fuel price decrease. Analysts say despite stability in the price of Brent crude oil, prospects of lower fuel prices are cancelled out by the weakening Rand.
The Rand is now hovering at R14. 45 to the US dollar after reaching a two year low of R15. 41 on Monday morning.
“Assuming that oil prices remain at their current levels of around 72 to 73 dollars per barrel, much is going to depend on what happens to the Rand. With the sharp depreciation, we have seen today (Monday) it will depend on whether this is sustained or the Rand manages to come back somewhat in order to determine what will happen to petrol prices on the first Wednesday of September,” says Economist at Econometrix Laura Campbell.