Cape Town — Following substantial fuel price drops in June and July, motorists can expect marginal relief on petrol and diesel prices for August.
The Automobile Association (AA) indicated that the latest data from the Central Energy Fund (CEF) shows that the current trends at mid-month are likely to change come the official price changes, The Citizen reported.
According to the AA, mid-month projects show that 95 unleaded petrol will decrease by roughly seven cents per litre, while 93 unleaded will drop by 4 cents per litre. The wholesale price of diesel will decrease marginally by one cent per litre, with illuminating paraffin will increase by roughly 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 said.
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According to TimesLIVE, the AA said increases in international product prices in June are pushing towards an under-recovery for all fuel prices, and the current rand/dollar exchange rate will buffer against a bigger increase in diesel and illuminating paraffin, and a nominal decrease for both petrol grades.
“Decreases offer immediate relief at the pumps but those sectors affected by them don’t immediately adjust their prices downwards and instead wait for more consistent fuel cuts that lower their input costs over time,” it said,
“We stand by our call that a review of the fuel price structure and an audit of the components that comprise the fuel price are essential and long overdue to offer sustainable solutions that mitigate against rising fuel costs,” it concluded.
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Compiled by Matthew Petersen
