Fuel price increases for August

The Automobile Association (AA) was commenting on unaudited month-end fuel price data released by the Central Energy Fund. The fuel price is adjusted on the first Wednesday of every month.

“The average rand/US dollar exchange rate consistently trended upward during July and the weaker local currency will make it more expensive for South Africa to import fuel,” said the AA.

The Association added that over the same period, international oil prices averaged higher, despite a mid-month pullback.

“As a result, the price increase will be quite hefty.”

August fuel prices

On Friday (July 30), the Central Energy Fund released the fuel price increases coming into effect on Wednesday (August 4). Here are the fuel price increases for August:

• Petrol: 91 cents per litre increase;
• Diesel: 55.58 cent per litre increase;
• Illuminating paraffin: 50 cents per litre increase; and
• LPGas: R2.26 per kilogram increase.

For the full list of price changes released by the Central Energy Fund, click here.

The AA said that these new increases will mean the price of petrol will have climbed nearly 23% in just seven months since January, while the price of diesel will have climbed around 20% and the price of illuminating paraffin will have increased by around 30% over the same period.

“ULP95 cost R14.86 a litre in January compared to the expected new price of around R18.22 in August. In January a litre of diesel cost R13.00 compared to the expected August price of R15.56 a litre, while a litre of illuminating paraffin is expected to cost around R9.61 when the price is adjusted for August compared to its price of R7.39 in January.

These increases will add to the heavy financial burden for South Africans already battered by weak economic conditions,” the AA concluded.

The Automobile Association does not regulate or adjust fuel prices in South Africa, nor does it have any input in how the fuel prices are calculated.