Mzansi motorists can expect another petrol price increase in August.

Global oil prices treaded higher during July, setting the stage for fuel price increases in August despite a surprise upside from the rand.

According to the Automobile Association (AA) petrol is likely to increase by between nine and 16 cents a litre, diesel by up to 48 cents, and illuminating paraffin by 43 cents.

"Oil traded in a fairly tight range throughout July, but it was a substantial climb at the beginning of the month, plus some recent volatility, that combined to push prices higher," the AA said.

The Association says that the steady strengthening of the rand during July appears to confirm the view of some economists that the currency is undervalued.

"The rand gained eight cents against the US dollar during July and the average exchange rate has firmed to below R16.90. With so much negative news surrounding the economy, the rand's firmer trend is welcome, but we would like to see the government support this trend in the area of economic policy certainty," the AA added.