June fuel price outlook negative – AA
Fuel price trends have tipped into negative territory, with price hikes on the cards for June.
This is according to the Automobile Association, which was commenting on the Central Energy Fund’s mid-month unaudited fuel price data.
“Despite the relative stability of the Rand/US dollar exchange rate, the basic fuel price has been driven upwards by increases in international petroleum prices,” the AA said.
“Although some price stability has been evident in recent days, a substantial appreciation in either the exchange rate or international pricing would be needed maintain the current fuel price come month end.”
The Association said that increases of between 48 and 52 cents per litre appeared likely for petrol, with diesel showing increases of 52 to 56 cents, and illuminating paraffin around 50 cents.
“Price forecasts, however, remain difficult, with considerable volatility evident.”
The AA has urged that motorists who are replacing their vehicles should consider more fuel-efficient models.
“Adopting more fuel-efficient driving techniques and route patterns will also assist in containing fuel costs,” concluded the AA.
