Petrol prices to drop, diesel to rise in July, AA says
The firmer rand against the dollar accounts for most of the expected decline in petrol prices
Petrol and illuminating paraffin prices are set for a second consecutive month of price decreases when fuel prices are officially adjusted next Wednesday.
However, diesel prices are set to increase, according to the latest unaudited data from the Central Energy Fund (CEF).
“The breakdown of the data shows that the average exchange rate used in the basic fuel price decreased over June from around R19.50 to the dollar to around R18.80, which accounts for most of the petrol price decrease,” says the AA.
“However, the movement in international oil prices is impacting negatively on diesel, contributing significantly to its expected increase.”
Both grades of petrol are expected to decrease by between 17c/l and 25c/l, while diesel is expected to increase by around 20c/l. Illuminating paraffin is set for a marginal decline of 3c/l.
“A decrease to the price of petrol is naturally welcome news and will provide some relief to embattled consumers. The increase to diesel, though, 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,” notes the AA.
Fuel prices for July will be adjusted on Wednesday July 5.
In June the retail price of petrol decreased by 71c/l and the wholesale price of diesel dropped between 80c and 84c.