Motorists are in for yet another petrol price increase in August, the good news is that it is not going to be severe. The price of fuel was initially meant to increase by 24 cents per litre, it further dropped to 19 cents and on Friday and the Automobile Association (AA) announced that they are expecting the increase to be as low 2c.
This can be attributed to the positive, yet marginal changes, in the rand dollar exchange rate, along with a decline in international oil prices.
The AA indicated that th Rand gained marginal traction against the US dollar during July and that this, accompanied with the international decrease in oil prices, created conditions for a minimal increase in our petrol price.
“As a result, petrol is expected to increase by around two cents a litre, and illuminating paraffin by four cents a litre,” the AA said.
After nearly five months of price hikes, the price of petrol stands at over R16 per litre and the two cents increase is the smallest increase so far.
Here is the expected increase
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“On the plus side, diesel will be cheaper by approximately four cents a litre. After several successive fuel price increases, motorists and other fuel users are due a breather, and the general stability of the fuel price during July will come as a relief to many,” stated by AA
We may be awarded minor relief, but the AA has said motorists will still feel pressure on their budgets as the year goes on.
“2018 has been a year of volatility in the fuel price, and the see-sawing Rand and oil price suggest that caution should be the watchword,” it said.
Motorists are still being cautioned on saving petrol and finding alternative methods of transportation in an effort to save funds.