Following a recent announcement, South Africans can potentially expect some minor relief at the pump stations in August 2024.
This is according to the Automobile Association (AA), which highlighted that current unaudited data from the Central Energy Fund (CEF) indicated these trends at mid-month.
However, the AA pointed out these trends are likely to change as the month progresses.
The current numbers show 95ULP down by around seven cents per litre, 93ULP down by around four cents per litre, and the wholesale price of diesel down by around one cent per litre. Illuminating paraffin is set for an increase of around six cents per litre.
“It’s important to remember that this is mid-month data and that the price outlook may still change drastically over the next two weeks before the official August adjustment is made, especially since the data is edging so close to revealing a different trajectory,” noted the Association.
Moreover, the Association said sharp increases in international product prices from the middle of June are pushing towards an under-recovery for all fuel prices.
But, as pointed out by the AA, the Rand/US dollar exchange rate is assisting to buffer against a bigger increase for diesel and illuminating paraffin, bringing forward a nominal decrease for both 95 and 93ULP.
The Association further noted that despite the forecast decreases, fuel prices in South Africa remain high and that previous significant increases will still impact the economy in the coming months.
“Decreases offer immediate relief at the pumps, but those sectors affected by them don’t immediately adjust their prices downward and instead wait for more consistent fuel cuts that lower their input costs over time. We stand by our call that a review of the fuel price structure, and an audit of the components that comprise the fuel price, is essential and long overdue to offer sustainable solutions that mitigate against rising fuel costs in the country,” concluded the AA.
With some form of relief on the horizon, what are your thoughts on the above? Share your views in the comment section below.
