The Central Energy Fund has released the petrol price data to take effect in August, showing a sizable drop in fuel prices across the board.<\/p>\n
From 5 August 2015, 93 and 95 petrol will cost 51 cents less, while diesel will drop by 76 cents per litre.<\/p>\n
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.<\/p>\n
The table below details the changes:<\/p>\n
| Fuel<\/th>\n | Increase\/Decrease<\/th>\n<\/tr>\n |
|---|---|
| 93 Petrol<\/td>\n | -51 cents<\/td>\n<\/tr>\n |
| 95 Petrol<\/td>\n | -51 cents<\/td>\n<\/tr>\n |
| Diesel 0.05%<\/td>\n | -76\u00a0cents<\/td>\n<\/tr>\n |
| Diesel 0.005%<\/td>\n | -74\u00a0cents<\/td>\n<\/tr>\n |
| Illuminating Paraffin<\/td>\n | -93 cents<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n \n Although the fuel price decrease\u00a0will greatly help deeply indebted consumers, the relief might be only temporary, cautioned Debt Rescue CEO Neil Roets on Friday.<\/p>\n While he welcomed the expected fuel price drop, Roets said consumers should be mindful that other economic indicators remain largely negative and they should understand that this is not a windfall that should encourage spending.<\/p>\n “A decrease may be of a very temporary nature as the rand is taking a hammering, having decreased in value against the dollar by more than 10% since the beginning of the year. This past week alone it has dropped by more than 1.5%,” said Roets.<\/p>\n \u201cIt is belt tightening time for the storm that might hit us later this year, as there is almost certainly going to be another interest rate hike. It is also a given that if the rand keeps trading at its current level, we are going to be looking at a substantial fuel price increase next month.”<\/p>\n So far this year, the price of petrol went from R10.78\/litre in January (for unleaded 93 at the coast) to R13.26 in July. The petrol price only decreased in February, and was unchanged in May from R12.35\/litre in April.<\/p>\n Diesel impact<\/h3>\nRegarding the expected diesel price drop, Roets pointed out that everything people consume is transported by trucks that guzzle vast amounts of diesel.<\/p>\n “If retailers play the game and pass on the reduced transportation costs, we could be looking at a reduction in the price of food and most other goods,” said Roets.<\/p>\n \u201cIt might even throw a lifeline to Eskom, which uses large amounts of diesel to keep its gas turbine generators going to help fill the shortfall of electricity in the grid.”<\/p>\n Deeply indebted<\/h3>\nConsumers collectively owe about R1.6trn and more than half of all borrowers are three months or more in arrears with their bill payments.<\/p>\n Any move in fuel prices, to be announced later on Friday, will take effect next Wednesday.<\/p>\n With\u00a0Fin24<\/a><\/p>\n<\/div>\n Petrol price relief expected in August<\/a><\/strong><\/p>\n |