Minor but welcome fuel decreases expected for August

Although minor, fuel decreases are expected across the board for August says the Automobile Association (AA), who was commenting on unaudited data from the Central Energy Fund (CEF).
 
According to the CEF data, 95ULP is expected to drop by around 14 cents/litre, and 93ULP by around 9 c/l. The wholesale price of diesel is expected to decrease by around 26c/l and the cost of illuminating paraffin by almost 21c/l.
 
“The main drivers behind the decreases are a strengthening Rand/US Dollar exchange rate, and lower international oil prices. The movements in exchange rates contributed most to the trajectory of the fuel prices moving downwards. International product prices dipped slightly from the middle of July, lowering the under-recovery, and resulting in the forecast decreases,” the AA notes.
 
With these expected decreases, consumers filling a 55-litre tank with 95ULP inland will only save a little over R7, and R4.95 if they fill up with ULP93.
 
“Naturally, 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. Our advice is to ensure vehicles are in good mechanical condition, and that tyres are inflated according to manufacturer’s specifications. A smoking vehicle or one that feels sluggish is also consuming more fuel. Should your vehicle present such symptoms, take it to an AAQA general repairer for a check-up. Old oil, worn sparkplugs and dirty air-filters will also cause higher fuel consumption. Avoiding heavy traffic, not overloading the vehicle, and minimising driving where possible are other ways to reduce usage,” suggests the AA.
 
Fuel Review
 
Earlier this month the AA welcomed the announcement by President Ramaphosa in his opening address to Parliament of a review of the fuel price formula. At the time we noted this validated our years-long call for a fuel price review to mitigate against rising fuel costs which continue to impact on already embattled consumers.
 
“We also noted that the bold step by the President to announce the review should unfold quickly and that all role-players in the country’s fuel value chain – including civil society organisations such as the AA – should be part of the discussions. Since the announcement by the President, however, there has been no communication from any department on when and how this review will occur. We again call on government not to lose the momentum and initiate the process as soon as possible, especially since fuel costs play a critical role in many sectors of the economy,” says the Association. 
 
The official announcement of the adjusted fuel price for August by the Department of Mineral and Petroleum Resources (DMPR) is expected on Monday, 5 August ahead of the adjustment at midnight next Wednesday, 7 August.