Fuel price hikes on the cards for August, cautions AA

Unaudited mid-month fuel data from the Central Energy Fund (CEF) is pointing to increased prices for most fuel in August, with ULP93 petrol the only fuel currently showing a decrease. But, says the Automobile Association (AA), this is likely to change in the next two weeks.

Based on the current data, ULP95 petrol is showing an increase of about seven cents a litre, while ULP93 is showing a nominal decrease of just over 1c/l. Diesel, however, is again showing significant increases for the second month in a row. The outlook at mid-month is of an increase of about 48c/l. Illuminating paraffin is also showing an increase of about 47c/l.

“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,” said the AA.

The current data reflects that international product prices – oil prices – are higher on average than the previous month and are the main contributors to the expected increases. The average rand/US dollar exchange 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 diesel prices will impact directly on consumers through higher prices given that this fuel is a major input cost in so many sectors,” added the AA.