Motorists can expect modest relief at the pumps in August, following a sharp decline in July, which should still be welcomed by consumers in the grip of a technical recession.
The latest information from the Department of Energy shows that the price of petrol 93 (ULP & LRP) in Gauteng could fall by 3.2 cents per litre, while the price of diesel with a 0.005% sulphur content could drop by up to 19.6 cents per litre in August.
Fuel prices are down from R13.33 for a lite of 95 in January, while diesel has come off a price per litre of R11.42 at the start of the year.
According to independent economist, Fanie Brink, the price of Brent crude oil has remained volatile over the past several weeks and has declined from approximately $60 a barrel at the end of June 2017 to below $47 a barrel early this month.
This, the economist said, is mainly because of an increase of US oil production by 59,000 barrels to nearly 9.4 million barrels a day.
This volatility in the crude oil price, along with a greater demand for petrol and the lower demand for diesel during the summer months in the northern hemisphere, resulted in an increase in the average international price of petrol by 13.6 cents per litre, but a decrease in the average international price of diesel by 2.5 cents per litre, Brink said.
He said that while the rand/dollar exchange rate has weakened since the end of June from below R13.00 to R13.60, it has strengthened again this week to around R13.20 which resulted in reductions of 16.8 cents per litre in the petrol price and 17.1 cents per litre in the diesel price for next month.
The final price changes will be announced by the Department of Energy towards the end of July.
Here’s what you can expect to pay in August:
|Fuel||July official||August expected|
|0.05% Diesel (wholesale)||R10.98||R10.78|