Last week the Automobile Association (AA) said in its mid-month report, that there could be a decrease in the August fuel prices looking at 95 octane petrol by up to 90c per litre, while 93 octane petrol could be R1.07 a litre cheaper, diesel could drop by 91c a litre and illuminating paraffin could decrease by 94c per litre.
However, Robert Maake, the DMRE spokesperson said the fall of the rand against other currencies had eroded the forecast.
“On the petroleum side, it was looking good the prices were going down, however, the exchange rate is going the opposite direction. So, we are hoping for positive news next week Friday.
August Fuel Prices Update:
The fuel levies for August might be announced on Friday, Maake added. The new fuel price will come into effect on Wednesday, 3 August.
August will be the first month where South African motorists will be paying the full fuel price, with no temporary relief coming from government.
In July, we saw significant increases in both grades of petrol going up by R2.37 and 2.57 per litre. The price of both grades of diesel went up by R2.30 and R2.31 per litre, with the price of illuminating paraffin increasing by R1.66
The main drive for the anticipated decline is the decrease in international petroleum prices but this is an offset for South Africa as the rand has become weaker compared to the dollar exchange rate. If the rand was stronger, we would see much larger fuel price cuts.