SA fuel price hopes fade as global markets shift
Motorists could still see some relief at the pumps next month, but rising oil prices and a weaker rand have sharply reduced the savings expected earlier this month.
Just two weeks ago, South African motorists were looking forward to fuel price cuts of almost R2 per litre in August. Now, they will be lucky to see even a fraction of that relief, reports Review Online.
According to the latest data from the Central Energy Fund, the expected petrol decrease has shrunk to between 40-85c per litre, while diesel users should prepare for no change, or even a slight increase.
What changed
The dramatic reversal is the result of a double blow to South Africa’s fuel import costs in the second half of July.
First, renewed geopolitical tensions pushed Brent crude oil prices from the low $70s per barrel to nearly $92 per barrel. Second, the rand weakened from around R16.40 to the dollar to R16.70, making fuel imports more expensive in local currency.
The market shift has effectively wiped out the over-recovery cushion that had built up in the first half of the month.
The new projections
| Fuel Type | Early July Projection | Expected August Change |
| Petrol 95 | Decrease of around R2.04/l | Decrease of R0.40-R0.80/l |
| Petrol 93 | Decrease of around R2.02/l | Decrease of R0.40-R0.85/l |
| Diesel 0.05% | Decrease of around R2.22/l | No change to slight increase (+R0.20-R0.45/l) |
| Diesel 0.005% | Decrease of around R2.60/l | Slight increase (+R0.25-R0.60/l) |
Because global demand for refined diesel remains exceptionally tight, diesel suffered larger daily under-recoveries in late July.
While petrol still retains a modest early-month buffer, diesel users should prepare for flat rates or a mild price hike.
What this means for South African households
For a standard 45-litre petrol car, the expected decrease of 40-80c per litre translates to savings of roughly R18 to R36 per tank, far less than the R90+ savings that had been anticipated just a fortnight ago.
The official August fuel prices will be confirmed by the Department of Mineral and Petroleum Resources at the end of July, with the new prices taking effect on Wednesday, 5 August.
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Read original story on www.citizen.co.za
