AA upbeat on fuel price after mid-month scare

31 July 2014

The AA’s view on the petrol price in August

Fuel price increases for August are likely to be lower than was predicted by the mid-July data. This is according to the Automobile Association which said that unaudited daily fuel price data released by the Central Energy Fund on July 30 showed a more favourable picture than the mid-month outlook.

“The average exchange rate has remained steady since our update of two weeks ago, but the important factor has been a flattening of international petroleum prices,” the AA said. “This has allowed the petrol price in particular to make up some lost ground, with data currently predicting 93 octane petrol to remain largely unchanged, while 95 octane is set to increase by about three cents per litre. This contrasts positively with the 26 cents per litre increase shown by the mid-month data.”

The Association commented that increases of around ten cents per litre were likely for diesel and eight cents per litre for illuminating paraffin. However, the AA warned that the flattening trend for fuel prices may not last. “The basic fuel price has shown some upward momentum since the 25th of July and motorists would be advised to keep a close eye on their driving techniques and vehicle use in case this trend continues through August."

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