Motorists must brace themselves for another hit to their wallets, as early data from the Central Energy Fund suggests that fuel prices are likely to increase in August.

ULP95 petrol and diesel are both expected to increase, adding to the cost of living for many South Africans.

This is a cause for concern, as fuel increases have a ripple effect on the cost of other goods and services.

The Automobile Association of South Africa (AA) said diesel is again showing significant increases for the second month in a row.

The outlook at mid-month is an increase of around 48c/l. Illuminating paraffin is also showing an increase of around 47c/l.

“At this stage of the month, the numbers are more reflective of the way the fuel prices are likely to go when they are adjusted at month-end for August.

“Currently, the trajectory indicates that all fuel will be more expensive in August, with the quantum of the increases most probably being higher than the current data indicates,” the AA notes.

The current data reflects that international product prices of oil are higher on average than the previous month and are the main contributor to the expected increases.

The average rand/US dollar exchange over the reporting period remains relatively flat and is not contributing much relief for the fuel prices.

“Naturally, we remain concerned that the effect of more diesel price [increases] will impact directly on consumers given that this fuel is a major input cost in so many sectors,” the AA concludes.

Adjusted fuel prices come into effect on August 2.