Fuel prices are officially calculated and adjusted on the first Wednesday of every month by the Department of Mineral Resources and Energy.<\/p>\n
August fuel price changes will come into effect on Wednesday (4 August), with the department gazetting the official changes sometime before then.<\/p>\n
Petrol prices have been most affected by the changes in international product prices during July, contributing to 43-47 cents per litre to the under-recovery. This has been dealt a double-blow by the weakening rand versus the dollar – contributing the balance of 33 cents per litre to the expected increase.<\/p>\n
For diesel, due to differences in the refinement process and product prices, the weaker rand is the bigger contributor to expected increases, with product prices accounting for a smaller increase at around 15 cents per litre.<\/p>\n
Exchange rate<\/strong><\/p>\n The rand buckled in July following the country’s move to lockdown level 4 amid rising cases of Covid-19.<\/p>\n The lockdown again shut down many businesses, while looting and rioting in the middle of the month, put pressure on supply chains.<\/p>\n While the month rounded out with the loosening of lockdown measures, the rand also had to contend with a bleak economic review from the South African Reserve Bank – which said better-than-expected growth in the last quarter was virtually wiped out by economic damage done by the riots – as well as international monetary policies that pushed investors out of riskier markets.<\/p>\n The spread of the Delta variant is also impacting global markets, dampening the overall global economic outlook.<\/p>\n Oil prices<\/strong><\/p>\n International product prices, which take their lead from oil, have also had a mixed month, with crude oil hovering around the $73-$75 per barrel range.<\/p>\n Global inventories are expected to tighten through the rest of the year as key energy consumers continue to rebound from the pandemic, Bloomberg reported.<\/p>\n However, as has been the trend throughout the global pandemic, the latest Covid-19 resurgence is raising concerns about the short-term demand outlook.<\/p>\n “The fast-spreading delta variant has led to renewed restrictions in some regions, putting crude on track for its second monthly loss since October,” Bloomberg said.<\/p>\n The oil market has become a fine balancing act, with producers wanting to take advantage of growing demand – but with the unpredictability of Covid variants and economic lockdowns, risks remain that over-production could lead to bloated stockpiles.<\/p>\n This has led to a stalemate of sorts, Bloomberg said, with \u201cpricing pressures temporarily put on hold amid the ongoing tug-of-war between delta variant concerns and expectations of crude deficits”.<\/p>\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/07\/Analysis-of-petrol-price-end-of-July-2021.png\")
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\n Fuel (Inland)<\/th>\n July official<\/a><\/th>\n August expected<\/th>\n<\/tr>\n \n 95 Petrol<\/td>\n R17.29<\/td>\n R18.09<\/span><\/td>\n<\/tr>\n \n 93 Petrol<\/td>\n R17.20<\/td>\n R17.96<\/span><\/td>\n<\/tr>\n \n 0.05% Diesel (wholesale)<\/td>\n R15.08<\/td>\n R15.55<\/span><\/td>\n<\/tr>\n \n 0.005% Diesel (wholesale)<\/td>\n R15.12<\/td>\n R15.58<\/span><\/td>\n<\/tr>\n \n Illuminating Paraffin<\/td>\n R9.13<\/td>\n R9.60<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n
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