Another Petrol Price Drop in August but Diesel and Parafin are Expected to Increase
- South Africans should expect minor decreases in petrol prices and slight increases in diesel and paraffin prices in August
- Mid-month data shows a 7c drop for 95ULP petrol, 4c for 93ULP petrol and a 6c increase for illuminating paraffin
- Drivers welcome the slight relief but call for a review of the fuel price structure for more sustainable solutions
Reitumetse Makwea, a Briefly News current affairs journalist in Pretoria, South Africa, has covered court, accidents, weather and crime-related news at The Citizen and Rekord Noweto for over five years.
Source: AFP
After two consecutive months of substantial decreases in petrol prices, South Africans may see a mixed outlook for August.
The Automobile Association (AA) has indicated that current unaudited data from the Central Energy Fund (CEF) shows minor decreases in petrol prices but slight increases in diesel and paraffin prices.
These trends, noted at mid-month, are subject to change as the month progresses.
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Petrol prices will go down again
According to the AA, 95ULP petrol is expected to decrease by approximately 7c per litre and 93ULP petrol by about 4c per litre.
The wholesale price of diesel is anticipated to see a marginal decrease of around one cent per litre.
Conversely, illuminating paraffin prices are set to increase by roughly 6c per litre.
“It’s important to remember that this is mid-month data and that the price outlook may still change drastically over the next two weeks before the official August adjustment is made, especially since the data is edging so close to revealing a different trajectory."
Under recovery for petrol prices
In a statement, the AA attributed these trends to sharp increases in international product prices from mid-June, which are pushing towards an under-recovery for all fuel prices.
However, the rand/US dollar exchange rate has helped buffer against a more significant increase for diesel and illuminating paraffin, contributing to the nominal decrease for both 95 and 93ULP petrol.
Despite the forecast decreases in petrol prices, the AA emphasises that fuel prices in South Africa remain high and that previous significant increases will continue to impact the economy in the coming months.
“Decreases offer immediate relief at the pumps, but those sectors affected by them don’t immediately adjust their prices downward and instead wait for more consistent fuel cuts that lower their input costs over time.
"We stand by our call that a review of the fuel price structure, and an audit of the components that comprise the fuel price, is essential and long overdue to offer sustainable solutions that mitigate against rising fuel costs in the country."
Drivers are excited about petrol prices
As news of the fuel price outlook spreads, drivers across South Africa have shared their thoughts, with many calling for a more significant price drop.
A driver, Thando Mbatha, said any decrease in petrol prices would be welcome.
"Even if it's just a few cents. But it’s frustrating to see paraffin prices going up when so many people rely on it for cooking and heating. We know a lot of poor families rely on it, but all I can say is I have little relief that it's coming after the winter."
Lerato Mononyane also expressed her excitement, noting that the prices were still too steep.
"It’s about time the fuel price structure was reviewed. The occasional decreases don’t offset the overall high cost of living. We need a more sustainable solution.
"But nonetheless I'm glad there’s a slight decrease in petrol prices, but honestly, the fuel costs are still too high. We need more significant and consistent drops to feel any real relief."
She also said diesel prices affect many businesses, including hers, but at least they will see a buck saved somewhere.
"Even a small increase can add up quickly. I hope the exchange rate continues to help keep the prices in check."
Positive outlook for fuel prices in July, predictions continue on downward trajectory
Briefly News reported that the Automobile Association (AA) reports potential fuel price decreases for July, with ULP93 showing the most significant drop.
Lower global oil prices drive these anticipated reductions, but the Energy Department will confirm the final adjustments on 3 July.
South African drivers express cautious optimism about the relief this may bring.
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Source: Briefly News
