Fuel prices look set to rise

File: Recent months have seen a decrease in the fuel price. Photo: via publicdomainpictures.net

JOHANNESBURG - According to the Automobile Association (AA) higher international fuel prices and a weakening rand/US dollar exchange rate will mean an increase in petrol prices by the end of July.

The AA commented on unaudited mid-month fuel price data released by the Central Energy Fund (CEF).

READ: Rand weakens, despite euro hitting 13 month high against the dollar

"There was a slight decrease in the international petrol price, but diesel and paraffin are up. Meanwhile, the rand's slip against the US dollar added around 17 cents a litre to fuel prices across the board," the AA commented.

"As a result, our mid-month prediction is that the petrol price is set to increase by up to seven cents a litre based on the current data, with diesel up 22 cents, and illuminating paraffin 19 cents higher."

The AA said international petroleum product prices have generally trended towards higher prices during July, while the exchange rate picture trends towards weakness.

It added that a continuation of these trends can cause even higher fuel price hikes by month-end.

"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," it stated.


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