File
The Automobile Association said after two consecutive months of substantial fuel price decreases, the tide appears to be turning.
It said unaudited mid-month data from the Central Energy Fund, was pointing to either minor relief at the pumps in petrol prices or slight increases in diesel and paraffin prices in August.
In a statement, the AA said the current data was showing that 95ULP would go down by around seven cents/litre, 93ULP down by around four cents a litre, and the wholesale price of diesel down by around one cent a litre.
Illuminating paraffin is set for an increase of around 6 cents a litre.
“It’s important to remember that this is mid-month data and that the price outlook may still change drastically over the next two weeks before the official August adjustment is made, especially since the data is edging so close to revealing a different trajectory,” the AA noted further.
The Association said sharp increases in international product prices from the middle of June are pushing towards an under-recovery for all fuel prices.
But, it also noted that the Rand/US dollar exchange rate was assisting to buffer against a bigger increase for diesel and illuminating paraffin, bringing forward a nominal decrease for both 95 and 93ULP.
The AA said that despite the forecast decreases, fuel prices in South Africa remain high and that previous significant increases will still impact the economy in the coming months.
It also reiterated its call for a “review of the fuel price structure, and an audit of the components that comprise the fuel price is essential and long overdue to offer sustainable solutions that mitigate against rising fuel costs in the country.”
