Fuel prices are set to go up again in August despite a stronger rand.
“Global oil prices [traded] higher during July, setting the stage for fuel price increases in August despite a surprise upside from the rand.”
This was according to the Automobile Association (AA), which was commenting on unaudited month-end fuel price data released by the Central Energy Fund.
As matters currently stood, petrol was likely to increase by between 9c and 16c a litre, diesel by 48c/ℓ, and illuminating paraffin by 43c/ℓ.
According to the AA, oil traded in a fairly tight range throughout July, but there was a substantial climb at the beginning of the month, plus some recent volatility, that combined to push prices higher. The stronger rand took the edge off August’s fuel price hike.
“Without the rand’s good performance this month, the increases would have been higher, [which] are solely attributable to increasing oil strength,” said the AA.
“With the level of global economic turmoil that currently prevails, predicting a ‘normal’ band for oil is near-impossible.”
The association advised fuel users to be pragmatic about the possibility of further increases, and to plan their budgets accordingly.
Meanwhile, Corné Louw, senior economist at Grain SA, said farmers would definitely be affected by the fuel price increase as South Africa’s agricultural diesel usage was still very high.
“Many producers in the summer grain areas are still harvesting and soil preparation will also start soon.”