Price of petrol to drop but diesel increases in July
According to the data, both grades of petrol are expected to decrease by between 17c/liter and 25c/l, while diesel is expected to increase by around 20c/liter. Illuminating paraffin is set for a marginalised decrease of three cents a liter.
The price of petrol and illuminating paraffin will decrease for a second consecutive month next Wednesday.
This is according to the latest unaudited data from the Central Energy Fund (CEF).
The diesel price is however set to increase, according to the Automobile Association (AA).
“The breakdown of the data shows that the average exchange rate used in the basic fuel price decrease over June from around R19.50 to the US Dollar to around R18.80, which accounts for most of the petrol price decrease.
“However, the movement in international oil prices is impacting negatively on diesel, contributing significantly to its expected increase,” noted the AA.
According to the data, both grades of petrol are expected to decrease by between 17c/litre and 25c/l.
Diesel is expected to increase by around 20c/litre, while Illuminating paraffin is set for a marginal decrease of three cents a litre.
“A decrease to the price of petrol is naturally welcome news and will provide some relief to embattled consumers,” the AA said.
A local resident, Vitesh Hurinanthan said that the price drop does give some relief.
“Some of it is absorbed but unfortunately when it goes up drastically like the way it did and price drops, the food prices don’t stay the same price.”
“On the one hand, yes, it’s good for the economy and people using cars and trucks, however as soon as the prices go up it’s a negative impact and you don’t hear of taxi fares and bus fares coming down as well and its always put down to fuel increase,” said Hurinanthan.
The AA further noted that the price increase of diesel, means input costs in among other sectors, the agricultural and manufacturing sectors are also likely to increase which may result in higher prices for consumers.
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