'Mixed picture again for fuel price' - AA

<i>Image: iStock</i>
<i>Image: iStock</i>

Fuel prices for August are set for changes with petrol up and diesel down. This is according to the Automobile Association (AA), which was commenting on unaudited month-end fuel price data released by the Central Energy Fund.

"International oil prices have steadily trended upwards since the start of June, although there has been a slight pullback since a peak on July 11. Since then, diesel prices have edged higher while petrol remained flat, although the currency remains volatile going forward, particularly in light of recent ratings agency announcements and other factors," the AA notes.  

According to the latest figures the AA forecasts that petrol will increase by around 12 cents a litre, and diesel will be down by approximately 16 cents. Illuminating paraffin is also down, by eight cents a litre. 

The Association says oil volatility is likely to continue, but that many competing factors are in play, such as US inventory levels, political instability in the Middle East, a possible medium-term demand plateau, and ongoing OPEC output restrictions.  

"Medium-term oil price forecasts remain subject to considerable uncertainty, as does the Rand against the Greenback," the AA comments. 

"The average Rand/dollar exchange rate crossed R14.20 last week despite spending much of July stronger against the US currency. This volatility can come into play before Wednesday’s adjustment and may even have a bearing on the September outlook, " the Association says.

The Association cautions that South African fuel users remain vulnerable to the country's difficult economic position and the vagaries of the international oil price.  

"Anything which shocks oil higher or the Rand weaker has the potential to cause sharp fuel price increases," it concludes.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
DAYS
HRS
MINS
Voting Booth
Who should have replaced Sergio Perez at this weekend's British GP?
Please select an option Oops! Something went wrong, please try again later.
Results
Sebastian Vettel - At least he'll get a taste of what the 2021 car will be like
26% - 548 votes
Nico Hulkenberg - He's been with the team before
27% - 570 votes
Fernando Alonso - A true racer, and the fastest Spaniard around
33% - 698 votes
Jenson Button - Any team can benefit from a champion driver
13% - 278 votes
Vote