PETROL is expected to increase by 12 cents per litre, while diesel will go down by approximately 16 cents in August.
Illuminating paraffin is also expected to decrease by eight cents a litre.
This is according to the Automobile Association’s (AA) latest forecast, based on the unaudited month-end fuel price data released by the Central Energy Fund.
The AA says the changes are likely because of international oil prices which steadily trended upwards since the start of June.
‘Since then, diesel prices have edged higher while petrol remained flat, although the currency remains volatile going forward, particularly in light of recent ratings agency announcements and other factors,’ the AA said.
The association said the oil volatility is also likely to continue, while US inventory levels and political instability in the Middle East are among competing factors in play.
‘Medium-term oil price forecasts remain subject to considerable uncertainty, as does the rand against the dollar.
‘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 association said.
It further cautioned that anything which shocks oil higher or the rand weaker has the potential to cause sharp fuel price increases.
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