Motorists can expect to pay a touch more for petrol and diesel at the pumps in August, thanks mainly to the rand’s volatility against the dollar.
The latest information from the Department of Energy shows that the price of petrol 93 (ULP & LRP) in Gauteng could increase by 12.9 cents per litre on Wednesday, 2 August 2017, while the price of diesel with a 0.005% sulphur content is expected to rise by 26.6 cents per litre.
Independent economist, Fanie Brink, noted that the crude oil price dropped to $46.71 a barrel early in the month, but recovered quickly to $50.59 a barrel. The increases in the average international prices of petroleum products caused increases of a cent per litre in the price of petrol and 14.5 cents per litre in the price of diesel.
Brink said that the volatility in the daily average exchange rate during the past month between R/$13.54 and R/$12.86 added a further expected increases of 11.9 cents per litre to the petrol price and 12.1 cent per litre to the diesel price.
In mid-morning trade on Tuesday the rand held steady against the dollar at R13.03 in the absence of domestic data.
The final price changes are expected to be announced by the Department of Energy on Friday, 28 July 2017.
Here’s what you can expect to pay in August:
|Fuel||July official||August expected|
|0.05% Diesel (wholesale)||R10.98||R11.25|