A petrol station in Edenvale, 7 March 2022. Photo: The Citizen/Neil McCartney
There may be some good news at the petrol pumps for motorists – with reports that the petrol price may be decreased in September, according to the Central Energy Fund’s latest data.
The Energy Department is expected to make the official announcement on the petrol price at the end of this week, Johannes Mokobane told The Citizen.
The decrease will bring some much-needed reprieve to motorists and cash strapped consumers.
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Koketso Mano, FNB Senior Economist says the Central Energy Fund on 26 August showed a month-to-date over recovery of about R2.00 per litre for petrol and R1.00 per litre for diesel.
“This means we could see another sizeable cut in fuel prices at the start of September. This follows cuts of over R1.30 for petrol, R0.80 for diesel at the start of August.”
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Mano says while the upcoming petrol price cuts are less than what was predicted earlier this month, it is still a positive development for consumers who have dealt with a cumulative rise of over R14 per litre in inland petrol price since the Covid-19 hard lockdown, which resulted in R26.74 per litre in July 2022.
“A cut of this magnitude would dampen headline inflationary pressures considerably and position the July inflation print of 7.8% as the peak for this current cycle.”
While headline inflation should remain elevated for the remainder of this year, an earlier peak would be a welcome development,” said Mano.
Mano says the lower oil prices have outweighed the R/$ exchange rate allowing the current month-to-date over recovery in petrol prices as shown in the Central Energy Fund’s data.
The current economic crisis propelled two of the biggest unions Cosatu and the South African Federation of Trade Unions (Saftu) to take to the streets last week, in various cities across South Africa to voice their concerns.
Members of trade union federation Cosatu say they are angry at government for the challenging economic climate in the country and are called for President Cyril Ramaphosa to fall.
Both unions also highlighted other issues including rising food prices, capping the petrol prices and the “privatisation of Eskom”.
ALSO READ: National shutdown: Cosatu calls on govt to assist the working class
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