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NOTE TO EDITORS:

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.

Fuel prices in August between 20% and 30% higher than in January

All fuel types will be more expensive in August when the Department of Mineral Resources and Energy (DMRE) adjusted fuel prices for August. This is according to the Automobile Association (AA) which was commenting on unaudited month-end fuel price data released by the Central Energy Fund (CEF). The fuel price is adjusted on the first Wednesday of every month.

“The average Rand/US dollar exchange rate consistently trended upward during July and the weaker local currency will make it more expensive for South Africa to import fuel,” says the AA. The Association adds that over the same period, international oil prices averaged higher, despite a mid-month pullback.

 

“As a result, the price increase will be quite hefty. We’re expecting around 83 cents a litre higher for petrol, 48 cents a litre for diesel, and also 48 cents for illuminating paraffin,” the AA says.

The Association says that these new increases will mean the price of petrol will have climbed nearly 23% in just seven months since January, while the price of diesel will have climbed around 20% and the price of illuminating paraffin will have increased by around 30% over the same period.

 

“ULP95 cost R14.86 a litre in January compared to the expected new price of around R18.22 in August. In January a litre of diesel cost R13.00 compared to the expected August price of R15.56 a litre, while a litre of illuminating paraffin is expected to cost around R9.61 when the price is adjusted for August compared to its price of R7.39 in January.  These increases will add to the heavy financial burden for South Africans already battered by weak economic conditions,” the AA concludes.

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