Small fuel price dip in July predicted but only for petrol

Drivers of petrol vehicles will once again feel the benefit at the pumps with a small decrease forecasted for July.

Commenting on the first unaudited data report released by the Central Energy Fund  on Tuesday (15 June), the Automobile Association (AA) said the stronger Rand was offsetting international oil price gains, but only for petrol, which is predicted to drop by six cents a litre.

The opposite resonates with diesel and illuminating paraffin, though, which are set to increase by 20 and 14 cents a litre respectively come 7 July.

“So far, we’ve seen some quite sharp increases in the landed prices of fuel this month, especially for diesel. This has come somewhat unexpectedly after the long decline in the basic fuel price throughout May,” the AA said.

It however added that a change in the prediction could occur towards the end of this month if the national currency weakens against the improving oil price.

“Much as we hope for the current picture to continue, South Africa might well be looking at across-the-board fuel price increases for July.”