The data that serves as a snapshot of market conditions since 14 July shows the petrol price could drop by as much as R1,08 per litre next month, while diesel is showing an over-recovery of 94 cents per litre.
The mid-month snapshot is as follows:
Petrol 95: over-recovery / decrease of 98 cents per litre;
Petrol 93: over-recovery/decrease of 108 cents per litre;
Diesel 0,05%: over-recovery /decrease of 92 cents per litre;
Diesel 0,005%: over-recovery /decrease of 94 cents per litre;
Illuminating Paraffin: over-recovery/decrease of 95 cents per litre.
The main driver for the anticipated decline is the drop in international petroleum prices, but this is being offset by a weak rand / US dollar exchange rate. Therefore, if the rand’s performance was stronger, we would see much larger fuel price cuts come to the fore, but sadly, the Rand’s weakness is eroding this outlook.
Earlier this year, the SA government intervened by cutting the General Fuel Levy (GFL) by R1,50 p /F in April and May and then halved it to 75c /F for June and July to take the sting out of the increases, but that relief will not be extended and from August the full GFL of R3,93 p /F will be applied, which will water-down any projected decreases.
The Automobile Association (AA) commented, “Given this, and based on the current data, the decreases in the prices of petrol and diesel are expected to be around 15c /F and 32c /F. Although these would be more significant if the GFL relief was still in play, a reduction is nonetheless welcome, and will ease some pressure on consumers.”
