SA petrol price could drop by R1 next week
Motorists can expect a substantial drop in the price of petrol in August – by as much as one rand, according to the Automobile Association (AA).
The association’s calculations are based on unaudited month-end fuel price data released by the Central Energy Fund (CEF).
Petrol will fall by approximately a rand a litre, diesel by approximately 70 cents, and illuminating paraffin by about 66 cents, the AA said.
“The rand has continued its recent march against the US dollar, with an almost uninterrupted two-month streak of gains,” the AA said. “The local currency was pegged at R15.70 to the dollar at the end of May, but is now sitting around the R14.20 mark.”
Read: Massive drop in SA petrol price coming in August – if you can get it
Impressive though the rand’s performance has been of late, it has contributed only about 25 cents of the expected fuel price drop in August, the association said. The balance has been due to the continued retreat of international petroleum prices in the wake of the United Kingdom’s vote to exit the European Union, it said.
“The landed price of fuel has dropped by almost 20 percent from its June 22 level,” the AA said.
“When taken in the context of the prevailing economic conditions, this windfall will come as a welcome breather to both private motorists and the transport industry.”
The predicted drop in the fuel prices comes amid industrial action in the petroleum sector affecting refineries and depots of petroleum companies.
Regarding this strike, the South African Petroleum Industries Association (SAPIA) indicated fuel was in supply, and that it had contingency plans in place for the strike.
Via Twitter it said: “Motorists are advised to stick to their normal refueling patterns to assist the petroleum industry in ensuring security of supply.”
Petrol prices are expected to change on 3 August, 2016.
The table below shows what the petrol price and wholesale price of diesel is expected to be in August, based on the latest data.
| Fuel | July Inland | Expected August |
|---|---|---|
| 95 Petrol | R13.37 | R12.37 |
| 0.05% Diesel (wholesale) | R11.70 | R11.00 |
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