Fuel prices for August 2020

The Department of Energy has published the latest fuel price adjustments, which will come into effect on Wednesday (5 August).

Motorists can expect a marginal increase in both grades of petrol this week, with diesel seeing a much bigger price jump.

The adjustments are as follows:

• Petrol 95: 5 cents per litre increase
• Petrol 93: 5 cents per litre increase
• Diesel 0.05%: 45 cents per litre increase
• Diesel 0.005%: 45 cents per litre increase
• Illuminating paraffin: 39 cents per litre increase

The fuel price increases are as a result of higher international petroleum prices over the period under review, which was undercut by a stronger rand performance versus the US dollar over the period.

International petroleum prices increased off the back of higher oil prices, which hit over $43 a barrel by the end of July.

“Oil traded in a fairly tight range throughout July, but it was a substantial climb at the beginning of the month, plus some recent volatility, that combined to push prices higher,” the Automobile Association said, noting that diesel and illuminating paraffin have been more affected by these swings than petrol.

The rand appreciated against the US dollar during the period under review, on average, when compared to the previous period. The average rand/US dollar exchange rate for the period 26 June 2020 to 30 July 2020 was R16.82 compared to R17.12 during the previous period.

This led to a lower contribution to the basic fuel prices on petrol, diesel and illuminating paraffin by 9.93 c/l, 10.43 c/l and 9.27 c/l respectively.

The AA said that without the rand’s good performance in July, the increases would have been higher, and they are solely attributable to increasing oil strength.

“With the level of global economic turmoil that currently prevails, predicting a ‘normal’ band for oil is near-impossible; we advise motorists to be pragmatic about the possibility of further increases, and to plan their budgets accordingly,” the AA said.

The prices will reflect as follows:

Credit: @BusinessTech