THE Automobile Association of South Africa (AA) says fuel prices are expected to increase again at the end of July.
The AA says unaudited mid-month fuel price data released by the Central Energy Fund shows that International oil prices changed during the first half of July, but remained within a fairly narrow band.
It says the oil prices did not contribute substantially to the price rises we are anticipating for next month.
“The big news is again on the Rand front. The local currency started this month with a deficit thanks to several days of losses against the US dollar at the end of June.
However, the Rand clawed back some of these losses during a period of unusually flat trading in the first half of June,” the AA said in a statement.
According to the AA, current data suggests a price rise of 19 cents a litre for petrol, 13 cents for diesel, and 22 cents for illuminating paraffin.
“If the prevailing Rand and fuel price trends persist for the rest of July, the fuel price increase may be lower than expected, but we cannot rule out the possibility of further volatility.”
The AA said the increases have brought the issue of fuel costs firmly into the public domain.
“We believe now is a good opportunity for the government to revisit the issue of the fuel levies with a view to reducing them significantly, especially as this is a cost it has control over.”
If the petrol prices increases it will cost R16.21 a litre inland, and R15.72 on the coast.
