Fuel price: Petrol to decrease but rise in diesel will hit pockets in July

Changes to the fuel price will be a mixture of relief and anguish for motorists next week Wednesday (5 July), according to the Automobile Association (AA).

How much more you will pay

Commenting on the unaudited data report by the Central Energy Fund, the AA said motorists will pay between 17 and 25 cents a litre less for petrol in July, while the cost of diesel is expected to go up by 20 cents a litre.

The price of illuminating paraffin is also set for a increase, but by a more marginal three cents a litre.

Attributing the decrease in petrol price to the rand having strengthened against the US dollar since the start of June, the AA said “the movement in international oil prices is impacting negatively on diesel, contributing significantly to its expected increase”.

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“A decrease to the price of petrol is naturally welcome news and will provide some relief to embattled consumers,” the AA said.

“The increase to diesel, though, means input costs in, among other sectors, the agricultural and manufacturing sectors, are also likely to increase which may result in higher prices for consumers.”

Prior predictions anything but good

Earlier this month, it was forecasted that petrol would rise by between four and 13 cents and diesel by seven.

As it stands though, the price of 93 unleaded will cost R22.10 a litre inland and 95 unleaded R21.70 at the coast and R22.43 inland. A litre of diesel will cost as much as R21.57.

An official announcement by the Department of Mineral Resources and Energy is only expected next week, though expectations are little will change from the AA’s prediction.

In a statement earlier in June, the Central Energy Fund said that an over recovery had been identified on the back of the rand bouncing back to under R19 against the greenback and oil prices dropping to less than $70 a barrel.

By midday on Friday (30 June), the national currency was trading at R18.85 against the dollar with Brent Crude Oil sitting at $74.34 a barrel, according to Moneyweb.

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