Petrol price drop expected in August
The petrol price is expected to drop in August, according to data from the Central Energy Fund and the Automobile Association.
In the middle of June, CEF data pointed to a likely decrease of about 30 cents per litre of petrol and 60 cents per litre of diesel, come August.
The latest data for the final week of July indicates that the petrol price would be even lower – between 47 to 49 cents a litre, with diesel down by approximately 70 cents.
Illuminating paraffin is also set for a likely drop of around 68 cents a litre.
Following several months of hikes, the inland price for 93 octane has risen 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.
According to the AA, the oil price has shown a gradual downward trend, and has continued to decline since the mid-July review of the fuel price picture.
“Despite some Rand weakness against the US dollar in the last few days, the South African currency unit has traded in a fairly tight band around R12.40 to the dollar since mid-month,” it said.
The result is that most of the benefit of lower international product prices will be passed on to the motorist.
“The recent downward trend in international petroleum prices would require a substantial reversal to heavily impact South African fuel prices.”
“The short-to-medium-term outlook for the fuel price is therefore likely to depend largely on the exchange rate.”
The final petrol price will be announced on 31 July, to take effect on 5 August.
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