Expect more agony at the fuel pumps in August

After a mixed fuel price picture in July where petrol decreased and diesel increased, the Automobile Association (AA) has painted a similar picture for August, albeit with one grade-type expected to go down.

The picture

Commenting on the first unaudited data report by the Central Energy Fund, the AA said current data points to a seven cents a litre increase in the price of 95 unleaded, a more substantial 48 cents rise in the price of diesel and 47 cents for illuminating paraffin.

The only downturn is the price of 93 unleaded, which will go down by a scant one cent per litre.

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The figures, however, are only provisional and could change as the month continues.

Earlier this month, the price of 93 unleaded dropped by 24 cents and 95 unleaded by 17 cents, while diesel rose by between 12 and 18 cents. The illuminating paraffin price was also down by four cents.

Reason

Citing higher international oil prices and a poor rand/US dollar exchange rate as the main reason for the projection, the AA remarked, “at this stage of the month the numbers are more reflective of the way the fuel prices are likely to go when they are adjusted at month-end for August.

“Currently the trajectory indicates that all fuel will be more expensive in August, with the quantum of the increases most probably being higher than the current data indicates.”

“We remain concerned that the effect of more diesel prices will impact directly on consumers through higher prices given that this fuel is a major input cost in so many sectors.”

According to Moneyweb, mid-afternoon figures on Monday (17 July) saw the rand trading at R18.03 to the US dollar with Brent Crude Oil priced at $78.93 a barrel.

Not yet final

In addition to a secondary report before the end of the month, an official announcement by the Department of Mineral Resources and Energy on the exact adjustments is expected to take place before 2 August.

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