South African motorists can expect some minor relief in petrol prices although the price of diesel may rise slightly at the fuel pumps in August.
This is according to the current unaudited mid-month data released by the Central Energy Fund this week. However, the forecast could shift as data trends are likely to change as the month progresses.
The current data shows a drop of around seven cents per litre in the price of 95ULP, while the price of 93ULP is expected to decrease by around four cents/l. The wholesale price of diesel is currently down by around one cent/l, but the price is expected to rise by month end. Illuminating paraffin is set for an increase of around six cents/l.
The Automobile Association (AA) said in a statement on Tuesday that the sharp increases in international fuel product prices from the middle of June are pushing towards an under-recovery for all fuel prices. However, the Rand/US Dollar exchange rate is assisting to buffer against a bigger increase for diesel and illuminating paraffin, bringing forward a nominal decrease for both 95 and 93ULP.
“It’s important to remember that this is mid-month data and 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 said.
The association added that despite the forecast decreases in petrol prices, fuel prices in South Africa remain high and previous significant increases will still 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,” said the AA.
“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.”
