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Fuel price cuts could be on the cards for August, early data shows

File picture: Ayanda Ndamane / ANA.

File picture: Ayanda Ndamane / ANA.

Published Jul 14, 2022

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Johannesburg - Although the fuel price crisis is far from over, South Africans could enjoy lower petrol and diesel prices at the beginning of August if current trends persist.

The international price of Brent Crude oil dipped below $100 per barrel this week, trading at $99.50 at the time of writing, and this has turned South Africa’s fuel price equation in a positive direction for the first time in months.

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Just how much money you’ll save next month depends on a number of factors, including the performance of the rand and oil prices between now and the end of the month, but the most recent daily data is hugely encouraging, with petrol prices being around R2.40 in the green.

However, due to the price fluctuations that have taken place this month, the average figure for the month so far indicates a decrease of just 88 cents per litre for 93 Unleaded petrol, 76 cents a litre for 95 ULP and 82 cents for 50ppm diesel. But considering that this ‘average’ has been increasing by around 18 cents a day since Monday, South Africans could enjoy fuel price cuts of anywhere between R1 and R2 if oil prices remain at current levels or lower.

And that’s a big if. Keep in mind that this is purely a speculative prediction based on current unaudited data and we’ll only know for certain once the Department of Energy announces the August fuel prices at the end of this month.

Another unfortunate fact to consider is that 75 cents of next month’s decrease will be absorbed by the discontinuation of the fuel price ‘tax holiday’ on 3 August, unless an announcement to the contrary is made.

This means that South Africa’s fuel taxes and levies would again amount to R6.11 per litre.

The Automobile Association has called for a review of the fuel price and taxation structure, stating that there is an urgent need to interrogate all components of the fuel price to determine if all components were still necessary and correct.

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Either way, it’s clear that South Africa needs a lasting solution to the fuel price crisis.

The DA said earlier this month that there were three ways to potentially reduce the fuel price by up to R9 a litre - read the full story here.

IOL Motoring

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