More fuel price increases expected

SA motorists will have to dig deeper in their pockets with an anticipated fuel increase at the end of the month.

The price of petrol will likely go up by 35 cents per litre, while diesel is expected to rise by 68 cents per litre and illuminating paraffin by 63 cents per litre.

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This, according to the Automobile Association (AA) in response to unaudited mid-month fuel price data which was released by the Central Energy Fund.

‘Oil’s recent price advances slowed in the first half of July, putting a ceiling on potential fuel price increases as the rand traded mostly flat against the US dollar,’ said a statement by the AA.

‘This will still leave our fuel prices below their pre-lockdown highs, notwithstanding the rand currently being pegged about R2 weaker to the dollar than it was then.

‘Despite our cautious optimism, that stability is creeping back into the market, and we advise motorists to expect further fuel price rises in the short term.’

The AA stated that oil prices had climbed slightly in the first few days of July, accounting for the bulk of this month’s increase to date.

‘In the past 10 days, oil has been priced in a narrower band, and we believe this might represent a more stable price plateau as the world oil market continues to rebound from the dramatic price plunges of April,’ the AA said.

Since the beginning of July, motorists have been paying R1,63 per litre more for petrol, R1,73 per litre more for diesel and R1,69 more per litre for illuminating paraffin.

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