According to the Automobile Association, mid-month fuel price data is currently pointing towards a petrol price increase of around 35 cents per litre next month, while diesel looks set to go up by 68 cents and illuminating paraffin by 63c.

However, on the upside, the most recent daily data has been in positive territory, meaning that if current rand and oil price trends continue to the end of the month, we could be looking at a somewhat smaller increase, or perhaps even a slight decrease, at least in the case of petrol.

“Oil's recent price advances slowed in the first half of July, putting a ceiling on potential fuel price increases as the rand traded mostly flat against the US dollar,” the Automobile Association said.

However, even if prices do go up in August, they will still be below their pre-lockdown highs.

“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 added.

“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”.

The rand has also shown some strength in recent days, trading at R16.52 at the time of writing.

--IOL--