South Africa, Automobile Association Pronounced Prices Petrol to Shoot-up and Diesel is due to take the Reverse

By Abdul Rahman Suagibu –

Photo Credit: Car Magazine

NEW AFRICA BUINESS NEWS, Freetown, Sierra Leone- From the Central Energy Fund shows an absolute mixed mind for motorists, the price of petrol is slightly to shoot up while as price of diesel is due for decrease in August.

The association is envisaging a petrol price increase of around 12 cents a litre from next week and a diesel price decrease in the region 16 cents, while paraffin is likely to come down by about 8 cents.

This will trigger the price 93 unleaded petrol up to R15.73 in Gauteng, with a litre of 95 unleaded costing R15.93, while those at the coast will likely pay R15.29 for the latter. Overall, the fuel price picture looks better than it did earlier in the month when trends where pointing to a possible price increase of more than 40 cents.

“International oil prices have steadily trended upwards since the start of June, although there has been a slight pullback since a peak on July “, the Automobile Association said.

“Since then, diesel prices have edged higher while petrol remained flat, although the currency remains volatile going forward “.

The Automobile Association expects the oil price volatility to continue due to a mixture of factors, including political instability in the Middle East, OPEC output restrictions, US inventory levels and a possible demand plateau in the medium term.

The rand also remains a possible drop that could affect fuel prices for the remainder of the year.

The local currency crossed the R14.20 mark to the US dollars last week after trading below R14 for much of the month.

This weakness came after the ratings agency Moodys delivered a warning about government ‘s R59bn Eskom bailout, while Fitch changed its concern about SOE bailouts pushing up the budget deficit even further.

For New Africa Business News Abdul Rahman Suagibu Reports,  Africa Correspondent

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