August fuel price predictions still mixed
The Automobile Association (AA) has revised its fuel price outlook for August, albeit still with an expected increase in petrol and decline in diesel.
Handle fuel nozzle to refuel. Vehicle fueling facility.
Commenting on unaudited data released by the Central Energy Fund on Monday (29 July), the AA said that dearer international oil prices and a volatile Rand are to blame for the latest predictions, which will see petrol rise by 12 cents a litre, but diesel drop by 16 cents and illuminating paraffin by eight cents.
“The average Rand/dollar exchange rate crossed R14.20 last week despite spending much of July stronger against the US currency. This volatility can come into play before Wednesday’s adjustment and may even have a bearing on the September outlook,” the AA said.
“South African fuel users have to remain vulnerable to the country’s difficult economic position and the vagaries of the international oil price. Anything which shocks oil higher or the Rand weaker has the potential to cause sharp fuel price increase”.
By mid-afternoon on Monday, the Rand was trading at R14.32 to the US Dollar with the Brent Crude Oil at $63.09 a barrel.
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