Commenting on unaudited
mid-month fuel data from the Central Energy Fund (CEF), the Automobile
Association (AA) has advised consumers to expect a price increase to petrol,
diesel and illuminating paraffin in September which will undoubtedly exert
pressure on already struggling motorists and consumers.
In a statement released on August 16, the AA said that according
to the CEF’s data, petrol is currently facing increases of between R1.41/litre
(for ULP93) and R1.45/l (for ULP95), while diesel could climb by as much as
R2.60/l and illuminating paraffin by R2.55/l.
If realised these increases
will mark the highest prices since December last year.
For ULP95 users in Gauteng,
the increases will result in a price point of around R24.28/l for fuel, and it
will cost about R1 335 to fill a 55-litre car. Filling the same car at the coast
will cost around R1 311.
“These surges in prices will pile pressure on all diesel users,
but particularly large users in the agricultural, retail, manufacturing, and
retail sectors. Consumers should brace for increases at the till as costs are
recovered through higher prices,” said AA.
Fuel prices in South Africa are driven by two main factors which
includes, international oil prices, and the exchange rate between the Rand and
the US dollar, as crude oil is traded in US dollars. A weaker Rand means fuel
gets more expensive to buy.
Oil prices have risen in
recent weeks because, among reasons, some producers curb output because of weak
demand.
“Naturally we are all looking at ways to manage expenses and as
fuel remains an integral part of many budgets, it’s difficult to avoid paying
the higher prices. Our advice is to ensure your vehicle is in good mechanical
condition, and that the tyres of the car are properly inflated. Avoiding heavy
traffic, not overloading the vehicle, and minimising driving are other tips
that may help,” said AA.
The official announcement of the adjusted fuel price for
September by the Department of Mineral Resources and Energy (DMRE) is expected
on September 4, ahead of the adjustment at midnight on September 6.
“We must also note that this is mid-month data, and the prices
may vary before the official adjustments, but the current outlook is certainly
pointing to significant increases at that time,” said AA.
