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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.

The Automobile Association (AA) is forecasting that petrol users are set for some month-end relief at the pumps, while other fuel users will pay more when the Department of Mineral Resources and Energy announces adjusted fuel price for June. The AA was commenting on unaudited month-end fuel price data released by the Central Energy Fund.

 

The Association is predicting that petrol will be 11 cents a litre cheaper in June. Diesel, meanwhile, is set to increase by about 22 cents a litre and illuminating paraffin by 21 cents.

 

“The Rand continued to strengthen against the US dollar throughout May, while international oil prices remained mostly flat. But the sharp spike in oil at the start of the month is still spilling over into the data, with the prices of refined diesel having seen a bigger impact than petrol,” notes the AA.

 

The AA says this will be disappointing news for transport companies who rely on diesel to power their fleets.

 

“It will also not be welcomed by citizens who use illuminating paraffin for cooking, lighting, and especially heating during the winter months,” says the AA.

 

The Association says the continuing strength of the Rand is good news though.

 

“For as long as our currency continues to put in strong performances against the US dollar, the impact of rebounding international oil prices will be softened,” it concludes.

 

Stay up to date with the latest fuel price fluctuations in the country here.

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