Petrol price relief expected in August

South African motorists are in for some petrol relief in August at current trends, according to Solidarity Research Institute.

It would follow several months of gradual hikes, which has seen the inland price for 93 octane rise to R13.52 /litre, from R11.02 /litre in January, and R13.77 /litre for 95 octane, from R11.24 /litre at the start of the year.

Paul Joubert, senior researcher at Solidarity Research Institute said that the retail prices of both octanes of petrol are currently likely to decrease by about 30 cents per litre, come August.

The wholesale price of diesel could decrease by as much as 60 cents per litre in August.

“These figures will likely still change as the month goes on, especially considering the current volatility due to the Greek bailout situation,” the researcher warned.

“So far during July, the average international price of petrol has decreased, but the rand has, on average, been slightly weaker against the dollar than it was on average during June.”

“The international price of diesel has decreased more than that of petrol, as the demand for diesel usually drops during the Northern Hemisphere’s summer months,” Joubert  said.

If these expected decreases do take place, a litre of 93 octane petrol in Gauteng will cost R13.22 in August 2015.

This will be 6.1% lower than the price of R14.08 in August 2014.

“However, if the rand continues to weaken and oil prices remain stable or increase, the first year-on-year increase in petrol prices since November 2014 could take place in September 2015,” Joubert said.

The final announcement on the changes to fuel prices will be made by the Department of Energy on Friday, 31 July, while the changes will be implemented on the first Wednesday of the month.

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Petrol price relief expected in August