Cape Town - South Africans can expect some relief at the pumps in August based on current unaudited mid-month data from the Central Energy Fund (CEF), the Automobile Association (AA) says.
The current numbers are showing 95ULP petrol down by around 90c/l, 93ULP down by around R1.07/l and the wholesale price of diesel decreasing by around 91c/l. Illuminating paraffin is also set for a decrease of about 94c/l.
“All of this is naturally good news for consumers and motorists and will ease some pressure on embattled budgets. We must, however, be cognisant of the fact that this is mid-month data, and that price outlook may change over the next two weeks before the August adjustment is made,” the AA said.
According to the data, the drop in international petroleum prices is driving the decreases but they are being offset by a weaker rand/US dollar exchange rate, which is eroding otherwise sharply declining fuel prices.
These decreases will be further limited due to the return of 75c/l to the General Fuel Levy (GFL), the AA said, with the GFL expected to return to its normal rate of R3.93/l in August.
“Given this, and based on the current data, the decreases to the prices for petrol and diesel are expected to be around 15c/l and 32c/l. Although these would be more significant if the GFL relief was still in play, a reduction is nonetheless welcome, and will ease some pressure on consumers,” the AA said.
The association noted that despite the forecast decreases, fuel prices in South Africa remain high and that the previous sizable increases will still impact the economy in coming months.
“Decreases offer immediate relief but increases filter into the economy over time, especially as those sectors affected by them don’t immediately adjust their prices downward but instead wait for more consistent fuel cuts that lower their input costs. We stand by our call that a review of the fuel price structure, and an audit of the components that comprise the fuel price is essential and long overdue to offer sustainable solutions that mitigate against rising fuel costs in the country,” the AA said.
Meanwhile, the South Africa First Forum has called on activists to join them for a #DOSomething march to Parliament on Sunday.
“We are doing this to make those in authority aware that we ordinary South Africans are gatvol/unhappy about load shedding, the high fuel prices, and the indiscriminate killing of our people. We are demanding that they do something about the situation,” South Africa First Forum convener Rod Solomons said.
“We are doing this on Madiba’s birthday because we are sure he would have stood with us. Any other like-minded civil society organisations and ordinary South Africans are welcome to join us.
“Those unable to join us in Cape Town can arrange placard demonstrations on key routes at work or home at 12pm. Those in Gauteng can arrange placard demonstrations outside the Union buildings at 12pm,” Solomons said.
Cape Times