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PLEASE TAKE NOTE:
The Automobile Association (AA) does not regulate or adjust fuel prices in South Africa, nor does it have any input in how the fuel prices are calculated.
Fuel prices are officially calculated and adjusted on the first Wednesday of every month by the Department of Mineral Resources and Energy. The DMRE is the only entity which regulates, sets, and adjusts fuel prices in South Africa.
As a public service to consumers, the AA publishes two fuel price outlooks monthly – one mid-month, and one at the end of the month before the official announcement by the DMRE is made, usually two or three days before the first Wednesday of the new month.
The AA publishes these forecasts to alert the public of looming changes to fuel prices, and the reasons for the changes. The AA relies on publicly available fuel price data from the Central Energy Fund (CEF) to compile its forecasts – a fact which is mentioned in every fuel price outlook issued by the AA. Along with the information relating to fuel price adjustments and providing context for them, the Association often provides useful tips to road users on how to conserve fuel, and tips for saving on fuel expenses.
Rand strength is keeping rampant international oil prices mostly at bay, but only petrol is currently set for price reductions, with other fuel types poised to increase. That’s the word from the Automobile Association (AA), which was reporting on unaudited mid-month fuel price data released by the Central Energy Fund.
“So far, we’ve seen some quite sharp increases in the landed prices of fuel this month, especially for diesel. This has come somewhat unexpectedly after the long decline in the basic fuel price throughout May,” says the AA.
The AA says that much of the oil price increase has been offset by the Rand, which had performed strongly against the US dollar throughout the first half of June.
At this mid-month stage, the Association is forecasting a six cent a litre decrease for petrol. The picture for diesel is less rosy and is showing an increase of around 20 cents a litre, with a 14-cent a litre increase for illuminating paraffin when prices are adjusted for July.
“However, these forecasts could all change by month-end, as the Rand looks to be flattening out while international oil prices are on an upward climb. Much as we hope for the current picture to continue, South Africa might well be looking at across-the-board fuel price increases for July,” it concludes.
