Higher international fuel prices and a weakening Rand/US dollar exchange rate have increased the likelihood that motorists will pay more at the pumps at the end of July. This is according to the Automobile Association (AA) which is commenting on unaudited mid-month fuel price data released by the Central Energy Fund (CEF).
“There was a slight decrease in the international petrol price, but diesel and paraffin are up. Meanwhile, the Rand’s slip against the US dollar added around 17 cents a litre to fuel prices across the board,” the AA comments. “As a result, our mid-month prediction is that the petrol price is set to increase by up to seven cents a litre based on the current data, with diesel up 22 cents, and illuminating paraffin 19 cents higher.”
The Association says international petroleum product prices have generally trended towards higher prices during July, while the exchange rate picture trends towards weakness, adding that a continuation of these trends can cause even higher fuel price hikes by month-end.
“As we have previously noted, the fuel price relief of recent months is unlikely to be sustained, and motorists should be prepared to pay more at month-end,” the AA concludes.