August fuel price increase

As of this month, June 2020, the Automobile Association (AA) have stated that the price of fuel will increase at the start of August 2020. While a fuel price increase is never a good thing, the AA has also mentioned a few things that look positive. This includes that the price increase has slowed in July 2020 and that it will not increase by more than the start of lockdown. 

“This will still leave our fuel prices below their pre-lockdown highs notwithstanding the rand currently being pegged about R2 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.” – AA 

What the fuel price increase in August means. 

Petrol looks to increase by around 35 cents a litre while diesel’s increase will be around 68 cents a litre. Illuminating paraffin may increase too by 63 cents. 

The price of oil climbed at the beginning of July 2020, and that has been the cause of the most recent fuel price increases. Even so, the AA has pointed out that the increases have been “unusually stable” during the month. 

“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.” – AA 

While the price of oil and fuel is likely to continue on the rise, we hope that the slower climb could be a little bit of positivity in these times. Please do be careful as we all get our cars back into driving shape and return to the roads.

Source: AA
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