“The Rand continued to strengthen against the US dollar throughout May, while international oil prices remained mostly flat. But the sharp spike in oil at the start of the month is still spilling over into the data, with the prices of refined diesel having seen a bigger impact than petrol,” said the AA.
This will be disappointing news for transport companies who rely on diesel to power their fleets, according to the AA
“It will also not be welcomed by citizens who use illuminating paraffin for cooking, lighting, and especially heating during the winter months,” said the AA.
The association also said the continuing strength of the Rand is good news.
“For as long as our currency continues to put in strong performances against the US dollar, the impact of rebounding international oil prices will be softened,” it concluded.
