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<\/a><\/figure>\n\n\n\nAccording to Bloomberg’s analysis of the market, rising summer demand for diesel is also pushing up global oil prices in general, countering concerns of a supply glut.<\/p>\n\n\n\n
Oil prices have trended higher since early May, with peak demand season starting solidly. However, analysts have questioned whether the strength can last.<\/p>\n\n\n\n
A notable blow for diesel prices going forward is the European Union’s new agreement to lower the price cap for Russian crude as part of a package of sanctions on Moscow over its war against Ukraine. <\/p>\n\n\n\n
The measures include curbs on fuels made from Russian petroleum, like diesel. <\/p>\n\n\n\n
Bloomberg noted that, while the market is still digesting the package, there are concerns over the potential impact on diesel supplies, which could lead to higher crude prices.<\/p>\n\n\n\n
\u201cThe sanctions package has lifted crude prices on the back of concerns about diesel supplies to Europe,\u201d said Florence Schmit, a strategist at Rabobank in London. <\/p>\n\n\n\n
\u201cStrength in diesel has been keeping crude prices elevated for the last few weeks.\u201d<\/p>\n\n\n\n
Fortunately for petrol users, the heightened diesel prices are not affecting the fuel’s trajectory, with the contribution to basic fuel prices locally flattening out.<\/p>\n\n\n\n
This is being supported by the rand sticking under R18\/$ and even strengthening to around R17.70\/$ on Friday.<\/p>\n\n\n\n
The stronger rand is helping to add to the likely petrol price cut in August and cutting down the diesel price hike.<\/p>\n\n\n\n
The rand’s resilience against the dollar is due to the greenback’s weakness, rather than any inherent strength in the local unit.<\/p>\n\n\n\n
Looming trade tariffs of 30% against South Africa on 1 August will likely knock the rand, especially if the rate cannot be negotiated lower before then.<\/p>\n\n\n\n
However, US consumers will ultimately suffer the fallout, with the dollar expected to come in even weaker as the economic impact of the Trump administration’s trade war plays out.<\/p>\n\n\n\n
The Department of Petroleum and Mineral Resources will announce the official petrol price adjustments before they take effect on Wednesday 6 August.<\/p>\n","protected":false},"excerpt":{"rendered":"
Petrol price recoveries are holding firm, but diesel drivers could be facing even more trouble in the months ahead as global supplies come under pressure.<\/p>\n","protected":false},"author":10,"featured_media":772882,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9874],"tags":[19909,2171],"class_list":["post-832084","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-diesel-price","tag-petrol-price"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/832084","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\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=832084"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/832084\/revisions"}],"predecessor-version":[{"id":832099,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/832084\/revisions\/832099"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/772882"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=832084"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=832084"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=832084"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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