According to the latest data from the Central Energy Fund, it seems the relief that July brought with the price reduction in petrol has gone up in fumes.
The group is showing that motorists can expect a minor increase in both grades of petrol for the month of August. Prices are expected to go up by 7 cents per litre for 95 octane and 4 cents per litre for 93 grade.
However, motorists using diesel-powered vehicles are in for a pleasant month, with the price of diesel expected to drop by a welcomed 20 cents per litre.
During the first two weeks of July, the Rand strengthened substantially against the dollar. This contributed to a 25 to 27 cents per litre drop in both the diesel and petrol prices.
However, international oil costs are currently on the rise. This follows a general global economic slowdown, which puts pressure on the demand. This coupled with the unpredictable relationship between the US and Iran, as well as an extended production cut in OPEC regions, paints a bleak picture for motorists.
Geopolitical tensions in the Persian Gulf, outages in both Iran and Venezuela and US Federal rate cuts, alongside tensions in the Gulf of Mexico, are also contributing to the increase in petrol prices.
However, the Automobile Association says there is considerable volatility in the factors which determine the petrol prices. Because of this, the AA regards the figures as merely indicative. This means the month-end figures might look a bit different from the current.
With this in mind, motorists can prepare to gear up for a change in the petrol prices come the month of August.
Alternatively by a bicycle, as “Nothing compares to the simple pleasure of riding a bike” – John F Kennedy.