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Petrol and illuminating paraffin prices are set for a second consecutive month of price decreases when fuel prices are officially adjusted next Wednesday. This is according to the latest unaudited data from the Central Energy Fund (CEF). The Automobile Association (AA) says, however, that the data is showing that diesel prices are set to increase.

“The breakdown of the data shows that the average exchange rate used in the basic fuel price decreased over June from around R19.50 to the US Dollar to around R18.80 to the USD, which accounts for most of the petrol price decrease. However, the movement in international oil prices is impacting negatively on diesel, contributing significantly to its expected increase,” notes the AA.

According to the data, both grades of petrol are expected to decrease by between 17c/litre and 25c/l, while diesel is expected to increase by around 20c/litre. Illuminating paraffin is set for a marginal decrease of three cents a litre.

“A decrease to the price of petrol is naturally welcome news, and will provide some relief to embattled consumers. The increase to diesel, though, means input costs in, amongst other sectors, the agricultural and manufacturing sectors, are also likely to increase which may result in higher prices for consumers,” notes the AA.

Fuel prices for July will be adjusted next Wednesday, 5 July.

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 (DMRE). The DMRE is the only entity which regulates, sets, and adjusts fuel prices in South Africa.

The AA publishes outlooks and fuel price commentary based on publicly available information and communicates movements to the fuel price in the interests of informing consumers.

 

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