AA warns of another fuel price hike in August
Durban - Motorists will have to dig deeper into their pockets as another fuel price hike is on the cards next month.
The AA said the global oil prices strode higher this month, setting the stage for fuel price increases next month despite a surprise upside from the rand.
The AA was commenting on unaudited month-end fuel price data released by the Central Energy Fund.
It said as matters stood, petrol was likely to increase in price by between nine and 16 cents a litre, diesel by up to 48 cents and illuminating paraffin by 43 cents.
“Oil traded in a fairly tight range throughout July, but it was a substantial climb at the beginning of the month, plus some recent volatility, that combined to push prices higher,” the AA said.
It noted that diesel and illuminating paraffin had been more affected by these swings than petrol.
With the lockdown in many countries around the world being eased, the demand for petrol has grown.
The AA said that the strengthening of the rand during this month appeared to confirm the view of some economists that the currency was undervalued.
The association also said that without the rand’s good performance this month, the increases would have been higher, and they were solely attributable to increasing oil strength.