The Automobile Association (AA) said that South African motorists can expect an increase in petrol prices in August, quoting unaudited mid-month fuel price data released by the Central Energy Fund.
The AA said that while the rand has improved against the dollar, international oil prices offset these gains.
“The Rand has progressively appreciated against the US dollar since 1 July, dipping below the R14 to the dollar mark,” the AA said.
“However, international oil prices, which pulled back further in the first week of July, have raced upwards again on concerns over international inventories and ongoing political instability in the Middle East.”
The refined cost of fuel was higher for petrol than diesel, meaning that while the price of petrol is expected to increase by R0.07 per litre, the price of diesel is projected to fall by R0.20.
Below are the expected petrol and diesel price increases for August 2019.
- Petrol price increase of 7c per litre
- Diesel price decrease of 20c per litre
The AA said there has been considerable volatility in the factors which determine petrol price expectations, adding that the situation remains highly fluid.
“We regard the current figures as merely indicative at this stage, and pragmatism suggests the picture at month-end might be substantially different from the current outlook,” the AA said.