{"id":779396,"date":"2024-06-27T14:27:56","date_gmt":"2024-06-27T12:27:56","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=779396"},"modified":"2024-06-27T14:28:00","modified_gmt":"2024-06-27T12:28:00","slug":"petrol-prices-on-shaky-ground-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/energy\/779396\/petrol-prices-on-shaky-ground-in-south-africa\/","title":{"rendered":"Petrol prices on shaky ground in South Africa"},"content":{"rendered":"\n<p>South Africa&#8217;s latest producer price inflation print may have come in lower than expected, but there are still concerns over fuel prices. <\/p>\n\n\n\n<p>According to Stats SA, annual producer price inflation (final manufacturing) decreased from 5.0% in April 2024 to 4.6% in May 2024 &#8211; lower than the market&#8217;s expectation of 5.0% <\/p>\n\n\n\n<p>PPI looks at inflation from the producer\u2019s perspective before it hits consumers, with a decrease in PPI, which is generally good news for CPI.<\/p>\n\n\n\n<p>The producer price index (PPI) increased by 0. 1% month-on-month in May 2024.<\/p>\n\n\n\n<p>The main contributors to the headline PPI annual inflation were: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Coke, petroleum, chemical, rubber and plastic products (increased by 7.3% year-on-year and contributed 1.7 percentage points);<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Food products, beverages and tobacco products (increased by 3,8% year-on-year and contributed 1.1 percentage points); and<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Metals, machinery, equipment and computing equipment (increased by 5.5% year-on-year and contributed 0.8 of a percentage point).<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/image-172.png\"><img loading=\"lazy\" decoding=\"async\" width=\"638\" height=\"394\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/image-172.png\" alt=\"\" class=\"wp-image-779399\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/image-172.png 638w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/image-172-300x185.png 300w\" sizes=\"auto, (max-width: 638px) 100vw, 638px\" \/><\/a><\/figure><\/div>\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/image-173.png\"><img loading=\"lazy\" decoding=\"async\" width=\"785\" height=\"401\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/image-173.png\" alt=\"\" class=\"wp-image-779400\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/image-173.png 785w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/image-173-300x153.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/image-173-768x392.png 768w\" sizes=\"auto, (max-width: 785px) 100vw, 785px\" \/><\/a><\/figure><\/div>\n\n\n<p>The Nedbank Group Economic Unit said that producer inflation will likely moderate in the coming months off a lower base. <\/p>\n\n\n\n<p>The worst of the El Nino (warmer, driver conditions) phenomenon is over, meaning that the upside risk for food prices has moderated. <\/p>\n\n\n\n<p>On the other hand, the delayed impact of the excessive heat earlier in the year, which damaged the summer crop harvest, will affect food prices in the months ahead.<\/p>\n\n\n\n<p>Lower global inflation will still mitigate the upside risks to local food prices. <\/p>\n\n\n\n<p>However, fuel prices and the vulnerable rand remain significant concerns.<\/p>\n\n\n\n<p>&#8220;While relatively subdued global demand and ample supply will likely keep oil prices in check over the short term, the <strong>ongoing Russia\u2013Ukraine and Israel\u2013Hamas conflicts still pose upside risks<\/strong>,&#8221; said Nedgroup&#8217;s economists. <\/p>\n\n\n\n<p>Despite these concerns, South Africans should expect to pay less for fuel in July due to the stronger rand and lower global oil prices. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"x6r0vaxvmm\"><a href=\"https:\/\/businesstech.co.za\/news\/energy\/778820\/r1-00-per-litre-petrol-price-joy-lined-up-for-next-week\/\">R1.00 per litre petrol price joy lined up for next week<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;R1.00 per litre petrol price joy lined up for next week&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/energy\/778820\/r1-00-per-litre-petrol-price-joy-lined-up-for-next-week\/embed\/#?secret=imZO4HsV8G#?secret=x6r0vaxvmm\" data-secret=\"x6r0vaxvmm\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>&#8220;At the same time, the rand remains vulnerable as the US Fed delays its interest rate cuts. Other operational costs will likely stay elevated.&#8221; <\/p>\n\n\n\n<p>&#8220;Producers will still be forced to absorb most of the cost pressures as weak consumer spending continues to limit the pass-through.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read<\/strong>: <a href=\"https:\/\/businesstech.co.za\/news\/banking\/779012\/south-african-banks-are-looking-good\/\">South African banks are looking good<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Producer price inflation has come in lower than the market expected, but Nedbank&#8217;s economists still have concerns over global oil prices. <\/p>\n","protected":false},"author":95,"featured_media":676437,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9874],"tags":[26,1799,1809],"class_list":["post-779396","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-headline","tag-nedbank","tag-stats-sa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/779396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=779396"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/779396\/revisions"}],"predecessor-version":[{"id":779417,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/779396\/revisions\/779417"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/676437"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=779396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=779396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=779396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}