This is according to mid-month data. The price outlook may change drastically over the next two weeks before the official August adjustment. Picture: Tumi Pakkies Independent Newspapers
Durban — South Africans can expect a minor relief, if any, for fuel prices in August.
This is according to the Automobile Association (AA), which said that after two consecutive months of substantial fuel decreases, the tide seems to be turning and South Africans can expect either minor relief at the pumps in petrol prices and slight increases in diesel and paraffin prices in August.
The AA said that current unaudited data from the Central Energy Fund (CEF) indicates these trends at mid-month. However, these trends are likely to change as the month progresses.
The current numbers show 95ULP down by around 7 cents/litre, 93ULP down by around 4 cents/litre, and the wholesale price of diesel down by around 1 cents/litre. Illuminating paraffin is set for an increase of about 6 cents/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.
It said sharp increases in international product prices from the middle of June are pushing towards an under-recovery for all fuel prices.
The AA also noted that 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.
Moreover, it noted that despite the forecast decreases in petrol prices, fuel prices in South Africa remain high and that 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. 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,” the AA said.
Earlier this month, the Department of Mineral Resources and Energy announced the adjustment of fuel prices from July 4.
Based on current local and international factors, the fuel prices for July 2024 were adjusted as follows:
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