The Automobile Association (AA) has predicted a moderate fuel reduction for August. This based on unaudited data provided by the Central Energy Fund (CEF).
The CEF data indicates that there should be a 14c/litre drop in 95ULP and a 9c/litre drop in 93ULP.
It is anticipated that the cost of paraffin would drop by around 21c/l. The wholesale price of diesel will drop by about 26c/l.
Decrease to take effect from August 7 midnight
This comes as the country awaits the Department of Mineral and Petroleum Resources to make a formal announcement regarding the August fuel price decrease on August 5, which will take effect at midnight on August 7.
The downward trajectory of fuel prices was mostly caused by changes in currency rates.
The AA stated that there has been a minor decline in international product prices since mid-July. And this has reduced the under-recovery and led to projection decreases.
“We are all looking at ways to manage expenses, and as fuel remains an integral part of many budgets, it’s difficult to avoid paying higher prices,” said the AA.
With the expected decreases, consumers filling a 55-litre tank with 95ULP inland will only save a little more than R7. And they will save R4.95 if they fill up with ULP93.
“Our advice is to ensure vehicles are in good mechanical condition. Ensure that yres are inflated according to manufacturer’s specifications. Avoiding heavy traffic, overloading the vehicle and minimising driving where possible, are other ways to reduce use.”
President Cyril Ramaphosa announced a review of the fuel price formula. This was during his opening speech to parliament earlier this month. Then announcement was welcomed by the AA.
Review of administered prices
Ramaphosa explained the commitment by the Government of National Unity (GNU). He said the GNU would undertake a comprehensive x. These include the fuel price formula, to identify areas where prices could be reduced.
“At the time, we observed that this supported our long-standing demand for a review of fuel prices. This in order to protect consumers from the ongoing effects of rising fuel prices.
“We also noted the bold step by the president to announce the review should unfold quickly. And all role-players in the country’s fuel value chain should be part of the discussions. These include civil society organisations such as the AA.”
The AA called on government not to lose the momentum and initiate the process as soon as possible. This as fuel costs play a critical role in many sectors of the economy.
