THE strength of the rand is keeping international oil prices mostly at bay, but only petrol is currently set for price reductions.
Other fuel types were set to increase, according to 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 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,” said the AA.
It added that much of the oil price increase had 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 was forecasting a 6C/L decrease for petrol.
The picture for diesel was less rosy and showing an increase of around 20C/L, with a 14C/L increase for illuminating paraffin when prices were 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 be looking at across-the-board fuel price increases for July,” it added.
