In its latest petrol price prediction for July 2021, the Automobile Association (AA) says the Rand strength is helping to keep rampant international oil prices mostly at bay. However, this is only applying to petrol.
According to the AA, which was reporting on unaudited mid-month fuel price data released by the Central Energy Fund, other fuel types poised for price increases.
“So far, we’ve seen some quite sharp increases in the landed prices of fuel this month, especially for diesel. This has come somewhat unexpectedly after the long decline in the basic fuel price throughout May,” says the AA.
The AA says that much of the oil price increase has been offset by the Rand, which had performed strongly against the US dollar throughout the first half of June.
At this mid-month stage, the Association is forecasting a six cent a litre decrease for petrol. The picture for diesel is less rosy and is showing an increase of around 20 cents a litre, with a 14-cent a litre increase for illuminating paraffin when prices are adjusted for July.
“However, these forecasts could all change by month-end, as the Rand looks to be flattening out while international oil prices are on an upward climb. Much as we hope for the current picture to continue, South Africa might well be looking at across-the-board fuel price increases for July,” it concludes.