South African fuel prices are set for a price hike in October after drone attacks on Saudi Arabian oil refinery, Abqaiq, in mid-September, according to the Automobile Association (AA).
"The landed price of fuels in South Africa jumped by as much as a rand a litre just three days after the attack, before settling back slightly. This turned a generally stable price picture into a negative one," said the AA.
The organisation predicts an increase per litre in 95 octane petrol, diesel and illuminating paraffin of 19 cents, 25 cents and 24 cents, respectively. However, 93 octane petrol is likely to see a slight decline of four cents per litre.
The AA believes the consequences of these drone attacks will trickle into the South African markets, and without the rand’s solid performance, an even heftier fuel price is expected.
"Without the rand's performance, we could have been looking at price rises in excess of 40 cents a litre for some fuels," said the AA.
On September 14 the world's largest oil processing plant, Abqaiq, was attacked by Houthi rebels in Yemen, with the US and Saudi Arabia blaming Iran directly. The drone attacks took out 5.7 million barrels per day of crude, leading Saudi Arabia to shut down half of its oil production
