Next week’s fuel price adjustment is expected to bring a second consecutive month of price decreases for petrol and illuminating paraffin, according to unaudited data from the Central Energy Fund (CEF). However, the Automobile Association (AA) warns that diesel prices are likely to increase.

In a statement from AA spokesperson Layton Beard, the organisation highlights that the data indicates a decline in the average exchange rate used in the basic fuel price, dropping from approximately R19.50/$ to around R18.80/$ in June.

This exchange rate adjustment accounts for most of the anticipated petrol price decrease. On the other hand, international oil price movements have had a negative effect on diesel, contributing significantly to its expected increase.

Based on the data, both grades of petrol are projected to decrease by an estimated R0.17 R0.25 a litre. Meanwhile, diesel prices are expected to increase by approximately R0.20 per litre.

Illuminating paraffin, however, will experience only a marginal decrease of R0.03 per litre.

READ: Lower inflation may provide some relief to cash-strapped consumers

The AA says a petrol price decrease will naturally provide some relief to financially strained consumers. However, the anticipated increase in diesel prices could have a negative effect on some of the country’s crucial sectors.

SOURCE:

Good news for the petrol price in July, but bad news for oil burners | City Press (news24.com)