Fuel prices projected to increase due to weak rand, rebound in global oil market - AA

The Automobile Association is projecting that South African motorists will pay about R1.73 more for a litre petrol, and R1.74/l more for diesel, from next week when fuel prices for July come into effect.  

It was commenting on unaudited month-end fuel price data released by the Central Energy Fund.

The AA said the main reason for the rise in fuel prices is the rebound in international oil prices. 

It also expects the price of illuminating paraffin to rise by R2.14, which it described as a "huge blow to citizens who use paraffin for cooking, lighting, and especially heating during winter."

Official changes in the fuel price have not yet been announced. 

The AA said a weak rand was also contributing to rising prices. 

"We cannot overstate the effect that the rand's collapse is currently having on fuel users: if the rand had remained at its pre-Covid-19 levels, fuel users would likely be seeing a reduction in fuel prices in the order of 75 cents a litre next month."

Compiled by Jan Cronje