Petrol price: What you can expect in August
With global oil price movements, there may be some good news for petrol prices in August but the same can’t be said for diesel prices.
South Africa's petrol prices are expected to decrease in August, bringing some relief to motorists, while diesel drivers may face an increase. According to mid-month data from the Central Energy Fund (CEF), petrol prices are showing an over-recovery of between 20 and 24 cents per litre.
In contrast, diesel prices are experiencing an under-recovery of around 62 cents per litre, reports BusinessTech.
Expected Price Changes
- Petrol 93: decrease of 24 cents per litre.
- Petrol 95: decrease of 20 cents per litre.
- Diesel 0.05% (wholesale): increase of 63 cents per litre.
- Diesel 0.005% (wholesale): increase of 62 cents per litre.
- Illuminating paraffin: increase of 26 cents per litre.
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Global oil prices are driving the mismatch in pricing, having seen volatility and recovery over the past few weeks. The rand's resilience versus the US dollar has helped soften the blow. Oil markets experienced significant swings but found stability in July, with Brent oil losing about 8% this year due to trade war fallout and oil producers relaxing supply curbs.
Oil prices impact petrol and diesel prices due to their direct relationship with global oil markets.
As international product prices for diesel diverge from petrol and slowly increase, diesel price recoveries are negative, leading to a sizeable hike in August. Conversely, petrol recoveries are helping line up a cut.
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