There shouldn’t be any nasty shocks or pleasant surprises when you fill your tank next month as the fuel price outlook for August shows that minor adjustments will be the order of the day for petrol and diesel.
The latest daily snapshot released by the Central Energy Fund on July 18 shows a minor over-recovery that could lead to petrol price decreases of around eight cents for 95 Unleaded petrol and four cents for 93 ULP.
The diesel price outlook is less clear-cut at present. While the month-average points to a six cent decrease for 500ppm and an eight cent increase for the cleaner 50ppm, the latest daily numbers show a stronger over-recovery that could lead to decreases for both grades by month-end if current price trends prevail.
The outlook for both petrol and diesel may still change between now and the beginning of August when the Department of Energy announces the official price adjustments.
The 95 Unleaded petrol currently costs R22.47 at the coast and R23.26 in Gauteng, following July’s 99 cent decrease, while 93 ULP is pegged at R22.86 following a R1.05 price cut. This followed June’s decrease of R1.24, when petrol increased by almost R3 between January and May as oil prices spiked.
As it stands in mid-July, the exchange rate is pushing the fuel price equation towards small decreases next month, with the rand having traded in the early 18s to the US Dollar for most of this month, versus last month’s average of R18.44.
The price of Brent Crude id hovering around $85 per barrel (R1,550) for most of the month, is however higher than June’s average of $82.24 (R1,500).
The Automobile Association (AA) has warned that the recent spate of price decreases could take some time to filter through to lower general inflation as the sectors affected by fuel prices don’t immediately adjust prices downward until a more consistent downward trend is seen.
The association reiterated its call for government to review South Africa’s fuel price structure.
“An audit of the components that comprise the fuel price, is essential and long overdue to offer sustainable solutions that mitigate against rising fuel costs in the country,” the AA said.