Fuel price warning for August

Despite a small over-recovery in fuel prices in early July, Pretoria motorists should brace for a potential fuel hike by the end of the month.

Rising global oil prices and a volatile rand/dollar exchange rate are poised to offset any short-term relief, signaling an increase in fuel costs ahead.

Also read: Here is the official petrol price for July

After the first week of July, petrol prices in South Africa show a potential cut of 11 to 13 cents per litre, while diesel prices may increase by 16 to 31 cents per litre.

According to a report by Business Tech, Investec chief economist Annabel Bishop warned that after two months of falling fuel prices in South Africa on lower international petroleum product prices, the recent lift, if sustained, could see higher fuel prices in August.

“A moderation in oil prices over the medium- to longer-term would aid in bringing down inflation and anchoring it close to targets, in turn contributing to a lower interest rate environment,” Bishop told the publication.

The rand’s recent strength reverses the weakening seen last week, which was driven by a much stronger dollar. The local exchange rate has shaken off pre- and post-election jitters, with the US interest rate moving once again in the driving seat.

Here is the official fuel price for July:

• Petrol 93: decrease of 105 cents per litre
• Petrol 95: decrease of 99 cents per litre
• Diesel 0.05% (wholesale): decrease of 30 cents per litre
• Diesel 0.005% (wholesale): decrease of 24 cents per litre
• Illuminating Paraffin: decrease of 18 cents per litre
• LPGAS: decrease of 22 cents per kg

MasterDrive CEO Eugene Herbert said basic driving adjustments could help with petrol and diesel consumption:

• Anticipate changes to traffic conditions and minimise unnecessary braking and acceleration.
• Reducing speed by 20km/h can reduce fuel consumption by 20%.
• Plan your route and use traffic apps and alerts to avoid traffic jams and congestion.
• Keep your RPMs around 3 000 as it can also reduce your consumption by 20%.
• Regular maintenance improves fuel efficiency.
• Minimum use of the aircon.

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