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The Automobile Association of South Africa said minor fuel decreases are expected across the board for August.
The AA was commenting on unaudited data from the Central Energy Fund (CEF).
“According to the CEF data, 95ULP is expected to drop by around 14 cents/litre, and 93ULP by around 9 c/l. The wholesale price of diesel is expected to decrease by around 26c/l and the cost of illuminating paraffin by almost 21c/l,” the Association said.
It said the main drivers behind the decreases were a strengthening Rand/US Dollar exchange rate, and lower international oil prices.
“The movements in exchange rates contributed most to the trajectory of the fuel prices moving downwards. International product prices dipped slightly from the middle of July, lowering the under-recovery, and resulting in the forecast decreases,” the AA noted.
Meanwhile the AA said it welcomed the announcement by President Ramaphosa in his opening address to Parliament of a review of the fuel price formula.
“We also noted that the bold step by the President to announce the review should unfold quickly and that all role-players in the country’s fuel value chain – including civil society organisations such as the AA – should be part of the discussions.
“Since the announcement by the President, however, there has been no communication from any department on when and how this review will occur.
“We again call on government not to lose the momentum and initiate the process as soon as possible, especially since fuel costs play a critical role in many sectors of the economy,” said the AA.
The official announcement of the adjusted fuel price for August by the Department of Mineral and Petroleum Resources (DMPR) is expected on Monday, 5 August with the adjustment at midnight next Wednesday, 7 August.
