Fuel price data taken from the start to the 12th of August show that South Africans could see petrol price cuts of up to R2.60 per litre come September, and diesel price cuts of up to R2.30 per litre.
The mid-month data was published by the Central Energy Fund (CEF) and takes into account fluctuations in international petroleum product prices and exchange rates.
According to the CEF, local motorists can expect the following fuel price adjustments next month, reports BusinessTech:
- Petrol 93 – Decrease of R2.44 per litre
- Petrol 95 – Decrease of R2.60 per litre
- Diesel 0.05% – Decrease of R2.30 per litre
- Diesel 0.005% – Decrease of R2.25 per litre
- Illuminating Paraffin – Decrease of R1.93 per litre
It must be noted that these anticipated changes are not yet final and do not consider possible retail margin changes and fluctuations in the country’s Slate Levy.
Therefore, the official adjustments that will come into effect on the first Wednesday of September may look significantly different.
Factors affecting South African fuel prices
Brent Crude oil was trading at $97 per barrel in mid-August, steadily decreasing over recent months over fears of a slowdown in the global economy.
At 12 August, this change in oil prices contributed to an over-recovery/reduction of up to R2.35 per litre for the price of petrol and R2.03 per litre for the price of diesel in South Africa.
In addition, the rand has regained some purchasing power against the US dollar throughout the start of the month, sitting around R16.20/dollar on Friday, 12 August.
Thus far, this brought an additional over-recovery/reduction of up to 25 and 28 cents per litre for the prices of petrol and diesel, respectively.
However, the local currency is highly sensitive to macroeconomic factors and the strength is mainly attributed to a global market correction, according to the Bureau for Economic Research.
As such, any shifts in broader market conditions could see the rand fluctuate again and wipe out its recent gains.
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