Current data indicates that conditions are positive for a drop in petrol and diesel prices in August 2024. Picture: iStock
Month-end data from the Central Energy Fund (CEF) points to small cuts in both petrol and diesel prices ahead of the official fuel price changes which will come into play on Wednesday, 7 August.
Petrol prices have moved from a slight over-recovery of around 15 cents per litre at the start of July to a decrease of between 7 cents and 11 cents per litre.
Wholesale diesel prices, meanwhile, are set to come down by between 9 cents and 22 cents per litre.
The late-month data is overall a significant improvement from the start and middle of the month when fuel price recoveries were a mixed bag.
The expected decreases are owing to a relatively stronger rand against the dollar compared to June. Flat global oil prices for most of July also contributed to the over-recovery.
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The fuel price is adjusted based on the rand/dollar exchange rate, as well as global oil prices.
This includes oil supply and production capacity, which can be influenced by the OPEC cartel of major producers.
International oil prices have fallen in the past week, but unfortunately, it’s too late to make a meaningful impact on August’s fuel price outlook.
The official fuel prices for August will be announced by the Department of Mineral and Petroleum Resources early next week ahead of coming into effect on Wednesday, 7 August.
The latest data update comes with the caveat that the unaudited CEF snapshots are not predictive and do not cover other potential changes like slate levy adjustments or retail margin changes.
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