Photo by: Bloomberg
Fuel price hikes are expected for all fuel grades in August, unaudited data from the Central Energy Fund has shown.
The data suggests petrol ULP95 will climb by around 35 cents a litre, and petrol 93ULP by around 30c/l. Diesel is expected to jump by around 72 cents a litre, and illuminating paraffin by the same amount.
In July, consumers saw some relief as petrol prices were cut between 17 and 24 cents a litre. Diesel, however, was hiked. The final adjustments for August are not yet set and will be announced mid-week.
In a statement, the Automobile Association (AA) expressed concern the impact of rising diesel prices. While it noted hikes across the board, it said "it’s the expected increases to diesel which are most concerning".
"The data is showing diesel will increase by around 72c/l which will, effectively, mean consumers will have to pay more for goods and services down the line. Illuminating paraffin, too, is expected to increase – also by around 72c/l. These are all significant upwards adjustments which will impact on all South Africans."
The expected spike is primarily driven by a steady escalation in international oil prices throughout the month.
While the rand did strengthen somewhat - earlier this week, it briefly hit its best level since February this year – however, this was not enough to stave off fuel price hikes.