• Fuel prices will see another adjustment at the end of August 2021.
• It's predicted that diesel will decrease by around 16c/litre.
• The changes in local fuel prices are due to declines in international petroleum prices.
• For more motoring stories, visit Wheels24
Reporting on unaudited mid-month fuel price data released by the Central Energy Fund, the Automobile Association (AA) notes that the price per litre for petrol and diesel could see modest changes when September 2021 comes around. According to the AA, it's expected that petrol will increase by around four cents a litre, while diesel could see a 16c decrease per litre.
The AA says: "The Rand's average exchange rate was virtually flat against the US dollar in the first two weeks of August - it has moved less than three cents. But the local currency is trending weaker, and this may weigh more heavily against the fuel price by month-end."
The adjustment in fuel prices comes on the back of declines in international petroleum prices.
Reopening of N3 encouraging
In July, the Organization of Petroleum Exporting Countries (OPEC) cartel -which had limited oil production due to decreased demand during the pandemic - announced that it would increase output by 400 000 barrels a day from August until the previous restriction had been eliminated. Commenting on this, the AA says: "This should improve oil price stability throughout August, although it could be countered by Covid-19-related uncertainty as new variants of the disease affect economic activity worldwide."
In local affairs, the AA commented that the SAPREF refinery, which was shut down under force majeure due to the recent unrest, had been slated for re-start on 21 July. The refinery had indicated this would take around ten days to complete.
"We, therefore, don't anticipate fuel shortages related to either the refinery or bulk transport of fuel by road - indications are that the N3 corridor between KwaZulu-Natal and Gauteng is stable and has not experienced significant disruptions since it was reopened, which is encouraging," the Association concludes.