Big drop expected for SA petrol price in September
Despite the rand hitting record lows against the dollar on Friday, motorists can look forward to another steep drop in the petrol price in September.
The rand hit a session low of R12.89 against the greenback, its weakest point since December 2001, while the local currency is at its lowest mark ever against the British pound, amid concerns about the local economy.
The rand slipped to an all-time low of R20.11 versus the pound, according to Thomson Reuters data.
“At the moment the outlook for the price of petrol is that it will likely fall by about 50 cents per litre on 2 September. The wholesale price of diesel is also likely to drop by about 43 cents per litre,” said Paul Joubert, senior researcher at Solidarity Research Institute.
“These changes are as a result of international petroleum product prices so far in August being lower than the average for July. The weaker rand has eroded this benefit for South Africans somewhat, but not completely,” he said.
The research specialist noted that these estimates could change as the month goes on, due to the volatility of both the rand and oil prices at the moment. “However, it is very unlikely that the prices of petrol and diesel will increase.”
The analyst further pointed out that September will likely be the tenth consecutive month of year-on-year lower petrol prices in South Africa – something that last happened in 2009 when prices were lower than in 2008 for 11 months of that year.
In August the price of 93 and 95 petrol declined 51 cents, while diesel dropped by 76 cents per litre.
So far in 2015, the price of petrol has increased from R10.78/litre in January to R13.26 in August.
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