Data showing more fuel price pain
15 July 2014
The AA’s view on the petrol price in August
Petrol prices could rise by as much as 26 cents per litre at the end of July. This is according to the Automobile Association, which was commenting on unaudited daily fuel price data released by the Central Energy Fund on Monday. “There has been a slow, but steady uptick in the Rand / US dollar exchange rate since the start of July,” said the AA. “Over the same period, international petroleum prices have come off their mid-June highs, but not enough to offset the under-recovery in the petrol price.” The picture might improve, but as things currently stand, owners of petrol-fuelled vehicles should prepare for more pain at the end of the month.
Diesel is showing a more favourable outlook, with current data predicting a slight price increase of around 3.5 cents per litre. Illuminating paraffin is also fairly stable, with an increase of about 4.5 cents per litre on the horizon. “If international petroleum prices continue to trend downwards, the major factor will be the exchange rate,” the AA commented. The AA’s view is that speedy resolution of current labour disputes will be important in containing further increases in our exchange rate which could negatively affect the fuel price.