Another fuel price cut expected in September
Early indications from the Central Energy Fund's data show that South African consumers can expect a fuel price cut in September.
FNB senior economist Koketso Mano says the data shows an over-recovery of above R2 per litre for petrol and R1 per litre for diesel.
"The Central Energy Fund data as at 26 August shows a month-to-date over-recovery sitting north of R2 per litre for petrol and R1 per litre for diesel."
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"This means we could see another sizable cut in fuel prices at the start of September. This follows cuts of over R1.30 per litre for petrol and R0.80 for diesel at the start of August."
She says with brent crude oil prices being volatile, this could be a pleasant surprise for financially stressed South Africans.
"Brent crude oil prices softened in the second half of this year and prices fell below $100 per barrel in the early parts of August but have subsequently risen.
"Lower brent crude oil prices have been largely driven by expectations of slower global economic activity. However, there are several moving parts that should keep oil prices relatively volatile."
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