Petrol Price Increase Forecast For August 2020

It looks a lot like the price of petrol, diesel and paraffin are going up in August 2020. Here's the latest forecast from the Automobile Association of SA.

As it stands, the current data suggests the fuel price increase will be 'around 35 cents a litre for petrol, 68 cents for diesel, and 63 cents for illuminating paraffin.'

The Automobile Association (AA) cites the recent oil price advance which has slowed which helps matters, but the exchange rate has not played ball as the main reason we're seeing this potential increase.

"This will still leave our fuel prices below their pre-lockdown highs notwithstanding the Rand currently being pegged about two Rand weaker to the dollar than it was then. Despite our cautious optimism that stability is creeping back into the market, we still advise motorists to expect further fuel price rises in the short term," the AA says.

“In the past ten days, though, oil has been priced in a narrower band, and we believe this might represent a more stable price plateau as the world oil market continues to rebound from the dramatic price plunges of April," says the AA

"Since 19 June, the local currency has traded in a daily band between R16.40 and its current level of around R16.80 to the dollar, which is a narrow range by comparison to what we have seen since March. It seems that there was some Rand over-reaction to much of the bad news – both globally and domestically – over the past three months. We're hopeful the correction will continue towards more optimistic valuation levels," the AA concludes.