AA warns of fuel price hikes in August

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

Based on current data, ULP95 petrol shows an increase of about 7c/l a litre, while ULP93 shows a nominal decrease of just over 1c/l. Diesel, however, again shows significant increases for the second month in a row. The outlook at mid-month is of an increase of about 48c/l. Illuminating paraffin shows 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,” the AA said. “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.”

The data reflects that international product prices — oil prices — are higher on average than in the previous month and are the main contributors to the expected increases. The average rand/US dollar exchange over the reporting period remains 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,” the AA said.