The Automobile Association (AA) of South Africa said that motorists can expect a slight breather on fuel prices next month.
The association commented on unaudited month-end fuel price data. It said better exchange rate performance and retreats in international oil prices will remain virtually unchanged in August.
“During July, the recent weakening trend of the rand against the US dollar slowed,” the AA said, noting that the local currency lost some ground, but only marginally.
Over the same period, international oil prices showed a slight average decrease which almost exactly cancelled the rand’s losses.
“As a result, petrol is expected to increase by around two cents a litre, and illuminating paraffin by four cents a litre,” the association said.
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“On the plus side, diesel will be cheaper by approximately four cents a litre. After several successive fuel price increases, motorists and other fuel users are due for a breather, and the general stability of the fuel price during July will come as a relief to many.”
The AA has noted that international oil prices showed a slight upward trend towards the end of July and said that motorists’ budgets would probably remain under pressure for the rest of the year.
“This year has been a year of volatility in the fuel price, and the see-sawing rand and oil price suggests that caution should be the watchword.”
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