Fuel prices look set to rise in August – AA

Unaudited mid-month fuel data from the Central Energy Fund (CEF) points to increased prices for most fuel in August, with ULP93 petrol the only fuel currently showing a decrease.

However, the Automobile Association (AA) says this is likely to change in the next two weeks.

Based on the current data, ULP95 petrol is showing an increase of around seven cents a litre, while ULP93 is showing a nominal decrease of just over 1c/litre.

Diesel is again showing significant increases for the second month in a row. The outlook at mid-month is of an increase of around 48c/litre.

Illuminating paraffin is also showing an increase of around 47c/litre.

“At this stage of the month the numbers are more reflective of the way the fuel prices are likely to go when they are adjusted at month-end for August. Currently the trajectory indicates that all fuel will be more expensive in August, with the quantum of the increases most probably being higher than the current data indicates,” the AA noted.

The current data reflects that international oil prices were higher on average than the previous month and were the main contributors to the expected increases, the AA said. The average rand/dollar exchange over the reporting period remained relatively flat and was not contributing much in terms of relief in the fuel prices.

“Naturally, we remain concerned that the effect of more diesel prices will impact directly on consumers through higher prices given that this fuel is a major input cost in so many sectors,” the AA said.

Cape Times