South African motorists could expect another small drop at the pumps next month after the Automobile Association (AA) released its mid-month fuel-price forecast.
According to the predictions, Rand strength is keeping rampant international oil prices mostly at bay, but only petrol is currently set for price reductions, with diesel likely to increase.
“At this mid-month stage, the Association is forecasting a six-cent a litre decrease for petrol. The picture for diesel is less rosy and is showing an increase of around 20 cents a litre, with a 14-cent a litre increase for illuminating paraffin when prices are adjusted for July.” – Automobile Association
— AA South Africa (@AASouthAfrica) June 15, 2021
The forecast is based of information from the Central Energy Fund and with there being two weeks to go before the price of fuel is fixed for July the forecast could change by the end of the month.
The AA says that much of the oil price increase has been offset by the Rand, which had performed strongly against the US dollar throughout the first half of June.
Should the rand maintain its current lateral position whilst oil prices climb, the forecast will likely change to an increase instead.
The rand started the month at around R13.70/$, strengthening to closer to R13.40 earlier in June. On Tuesday it dropped to around R13.77