Cape Town – Petrol and illuminating paraffin prices are expected to decrease for the second consecutive month when fuel prices are officially adjusted next week, the Central Energy Fund (CEF) says.
However, according to the Automobile Association (AA), the data suggests that diesel prices will increase.
“The breakdown of the data shows the average exchange rate used in the basic fuel price decreased over June from around R19.50 to the US dollar to around R18.80 to the US$, which accounts for most of the petrol price decrease.
“However, the movement in international oil prices is impacting negatively on diesel and contributing to its expected increase,” said the AA.
The data shows that both grades of petrol will decrease by 17c/litre to 25c/litre, while diesel is expected to increase by around 20c/litre.
Illuminating paraffin prices will marginally decrease by 3c/litre.
The decrease in petrol prices is seen as positive news for consumers, providing some relief, said AA.
“The increase to diesel, though, means input costs in, among other sectors, the agricultural and manufacturing sectors, are also likely to increase which may result in higher prices for consumers.”
“A decrease to the price of petrol is naturally welcome news and will provide some relief to embattled consumers,”
However, the increase in diesel prices may result in higher costs for sectors such as agriculture and manufacturing, potentially leading to higher prices for consumers.
The fuel prices for July will be adjusted on July 5.
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Compiled by Betha Madhomu
