The mid-month fuel price prediction for August 2023 has been announced, again showing big increases for diesel.
The unaudited mid-month fuel price data from the Central Energy fund has been released and the Automobile Association (AA) has shared its forecast for the month of August 2023.
As things stand, the price of unleaded 93 is the only grade showing a small decrease of just 1 cent per litre. However, everything else looks set to increase. Unleaded 95 will increase by around 7 cents litre while diesel users are in for a substantial 48 cents a litre increase. Paraffin will increase by around 47 cents a litre.
“At this stage of the month the numbers are more reflective of the way the fuel prices are likely to go when they are adjusted at month-end for August. Currently the trajectory indicates that all fuel will be more expensive in August, with the quantum of the increases most probably being higher than the current data indicates,” the AA notes.
“Naturally, we remain concerned that the effect of more diesel prices will impact directly on consumers through higher prices given that this fuel is a major input cost in so many sectors,” concludes the Association. As a reminder, its not just vehicles which use diesel and electricity generators are big consumers of diesel.
The reasoning behind the change is the current price of oil which is higher on average in comparison to the previous month. The exchange rate over the last few weeks has been relatively flat, according to the AA and thus not helping much with any potential decreases.
Of course, things can change between now (17th July) and the end of the month. A rapid change in the exchange rate as well as a sudden change in the global price of oil can throw this prediction out the window.
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