SOUTH AFRICA - PRICE OF PETROL MAY DECREASE BY AS MUCH A R1

South African motorists could enjoy an even bigger fuel price reduction than originally anticipated if current trends persist.

In the middle of July data from the Central Energy Fund showed that the country was on course for an 83-cent petrol price reduction, but the latest figures show that the cost could tumble by 93 cents a litre or more.

This is due to the rand trading stronger than it has in previous months, and international crude oil prices decreasing slightly. Currently the average over-recovery for 95 Unleaded stands at 93 cents a litre, based on the currency-oil price movements between July 6 and July 25, and that figure could still change marginally between now and the end of the month although at this stage the risk appears on the upside with the daily recovery having stood at R1.19 on Monday.

Fuel price calculation: who takes what?

Assuming that the final over-recovery figure remains around 93 cents, 95 unleaded should drop to around R11.93 at the coast and R12.41 in Gauteng.

Those driving diesel-powered vehicles won't be quite as lucky, but can still look forward to saving around R65 cents a litre if current trends persist. This would mean around R10.67 in coastal areas and R11.05 in Gauteng.

Yet while motorists can certainly look forward to some fuel price respite in August, the Automobile Association cautions against getting our hopes up too high:

“The underlying trend has been towards higher fuel prices over the past months as the rand weakened and international oil prices climbed. It is not yet clear what effect recent events will have on this trend, and it would be premature to assume it has been disrupted.”

VIA - iol.co.za