The Central Energy Fund’s (CEF) unaudited mid-month fuel data currently points to price increases for most fuel types in August, with ULP93 petrol the only product showing a decrease on the cards.
But according to the Automobile Association (AA), this will likely change in the next two weeks.
However, the current data indicates steep price hikes, particularly for diesel, which will have a ripple effect on the economy and consumer price inflation.
Based on current data, ULP95 petrol shows an increase of about seven cent a litre, while ULP93 reflects a nominal decrease of just over 1c/l. Diesel, however, is again showing significant increases for the second month in a row, with the outlook at mid-month reflecting an increase of around 48c/l.
Illuminating paraffin also shows an increase of around 47c/l.
“At this stage, the numbers are more reflective of the way the fuel prices are likely to go when they are adjusted at the end of August," the Automobile Association (AAsaid.
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 said.
The current data reflects that international oil product prices are higher on average than in July and are the main contributors to the expected increases. The average Rand/US Dollar exchange rate over the reporting period remains relatively flat and is not contributing much in terms of relief in the fuel prices.
“Naturally, we remain concerned that the effect of more diesel price (increases) will impact directly on consumers through higher prices given that this fuel is a major input cost in so many sectors,” the AA added.
