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The Automobile Association of South Africa has announced that petrol will increase by around 12 cents a litre, while diesel will be down by 16 cents in August. Illuminating paraffin is also down by eight cents a litre, according to the unaudited month-end fuel price data released by the Central Energy Fund.
The AA said in a statement: “International oil prices have steadily trended upwards since the start of June, although there has been a slight pullback since a peak on July 11. Since then, diesel prices have edged higher while petrol remained flat, although the currency remains volatile going forward, particularly in light of recent ratings agency announcements and other factors.
“Oil volatility is likely to continue, but that many competing factors are in play, such as US inventory levels, political instability in the Middle East, a possible medium-term demand plateau, and ongoing OPEC output restrictions. Medium-term oil price forecasts remain subject to considerable uncertainty, as does the Rand against the Greenback.”
This volatility can affect Wednesday’s adjustment and the September outlook, said the AA.
“South African fuel users have to remain vulnerable to the country’s difficult economic position and the vagaries of the international oil price. Anything which shocks oil higher or the rand weaker has the potential to cause sharp fuel price increases.”