Minor petrol price decrease expected next month

Motorists could have some relief at the pumps next month as the price of petrol is expected to decrease.

The same cannot be said about diesel and paraffin prices which look set for slight increases.

This is according to the Automobile Association (AA) which was commenting on unaudited data from the Central Energy Fund (CEF).

ALSO READ: July fuel price decrease delayed

The AA predicts that 95 unleaded petrol will go down by around seven cents per litre, while 93 unleaded petrol will drop by around four cents per litre.

The wholesale price of diesel is expected to go down by around one cent per litre, and illuminating paraffin up by around six cents per litre.

“It’s important to remember that this is mid-month data and that the price outlook may still change drastically over the next two weeks before the official August adjustment is made, especially since the data is edging so close to revealing a different trajectory,” the AA stated.

The association says fuel prices in South Africa remain high with the previous significant increases likely to impact the economy in the coming months.

“Decreases offer immediate relief at the pumps, but those sectors affected by them don’t immediately adjust their prices downward and instead wait for more consistent fuel cuts that lower their input costs over time.

“We stand by our call that a review of the fuel price structure, and an audit of the components that comprise the fuel price, is essential and long overdue to offer sustainable solutions that mitigate against rising fuel costs in the country,” the AA said.

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