Increased Petrol Prices Predicted for August

Advertisement

Fuel prices are set to go up again in August, but there is good news as the South African rand has performed well in the second half of the month keeping the increases to a minimum, at least when it comes to petrol.

Late month data released by the Central Energy Fund implied that petrol prices are likely to rise by between 6 and 11 cents a litre if current trends continue for the next three days. However, for those driving diesel, the increase will be between 44 and 50 cents a litre.

Earlier in July, it was predicted that petrol would increase by around 35 cents a litre and diesel by 68 cents.

The stronger rand has positively affected South Africa’s petrol price equation for the second half of July, however a negative equation earlier in the month has still skewed things towards a slight increase for August. 

If the equation remains in the green during August, a small petrol price reduction could be on the cards for September.

Even with small increases, South African fuel prices will still be below their pre-lockdown highs, notwithstanding the rand currently being pegged about R2 weaker to the dollar than it was then.

“Despite our cautious optimism that stability is creeping back into the market, we still advise motorists to expect further fuel price rises in the short term,” the Automobile Association warned earlier this month.