Despite a significant drop in the price of petrol and diesel in mid-June, an increase in price at the pumps for mid-July seems likely, according to the Automobile Association of South Africa (AA).
Based on audited mid-month fuel price reports and data collected by the Central Energy Fund (CEF), the AA’s predictions show that petrol could increase by 17 cents a litre.
“As we have previously noted, the fuel price relief of recent months is unlikely to be sustained and motorists should be prepared to pay more at month-end”, explained the AA.
The hike is largely due to the Rand’s recent slip against the US dollar which has increased fuel prices across the board. Yet, the AA adds that petrol prices have often trended towards increasing in July.
Potential stability to the petrol price could be seen in October when the Minister of Finance’s plan to restore economic confidence for local and foreign investors is set to kick in.
However, any assertions at this point are impossible.