Diesel was expected to increase by around 20c/litre. Picture: Thobile Mathonsi/African News Agency(ANA)
While an expected decrease in the price of petrol has been welcomed, the agricultural and manufacturing sectors have little to celebrate as a predicted increase in the diesel price will hike input costs resulting in higher prices for consumers.
The AA was commenting on the news that petrol and illuminating paraffin prices were set for a second consecutive month of price decreases on Wednesday, according to the latest unaudited data from the Central Energy Fund (CEF).
“The breakdown of the data shows that the average exchange rate used in the basic fuel price decreased over June from around R19.50 to the US Dollar to around R18.80 to the USD, which accounts for most of the petrol price decrease.
“However, the movement in international oil prices is impacting negatively on diesel, contributing significantly to its expected increase,” noted the AA.
“A decrease to the price of petrol is naturally welcome news and will provide some relief to embattled consumers.
“The increase to diesel, though, means input costs in, among other sectors, the agricultural and manufacturing sectors, are also likely to increase which may result in higher prices for consumers.”
According to the data, both grades of petrol were expected to decrease by between 17c/litre and 25c/l, while diesel was expected to increase by around 20c/litre.
Illuminating paraffin was set for a marginal decrease of three cents a litre.
Cape Times