There may be a slight increase in petrol prices during August according to the latest mid-month data by Central Energy Fund (CEF).
The Central Energy Fund (CEF) has released its latest mid-month data on petrol prices and it looks as if motorists will have to gear up for a slight increase. Diesel drivers, however, may see a decrease in August prices.
The mid-month data shows that there may be a slight increase in both grades of petrol with 95 octane expected to increase by 2 cents per litre while 93 octane is set to increase by 1 cent per litre.
The price of diesel has shown a recovery of 22 cents per litre, which is good news for motorists who drive diesel cars because they might pay less for petrol in August.
Due to a reversal in trends for both international petroleum prices and the rand/dollar exchange rate, the price of petrol will see a slight adjustment.
The Rand has strengthened against the dollar in the first two weeks of July, which sees a contribution of 25 cents per litre in both the petrol and diesel prices. This is a continuing trend in international product prices, which have seen an increase of 24-27 cents per litre of petrol.
The Rand stabilised last week after the National Treasury announced a new recovery plan for Eskom as well as international movements, which have renewed the trust of investors within the South African economy.
Investors have a renewed faith in the plan set by the government to help the power utility and conduct the necessary restructuring in order to improve its financial situation.
The talk of nationalising and changing the mandate of the Reserve Bank has also been quashed by the recent re-appointment of Reserve Bank governor Lesetja Kganyago for another five-year term. This reinforces the stance that the government is committed to the continuation of the central bank. The Reserve Bank’s Monetary Policy Committee will be announcing a rate cut on Thursday (18 July).
In the US, the latest data shows a much more stable market, which gives investors the confidence to take risks in emerging markets.
Other factors that have contributed to an increase in the petrol price include international oil prices, which have increased. These increases were caused by geopolitical tension in the Persian Gulf, the power outages in Venezuela and Iran, the US Federal rate cut and the tension in the Gulf of Mexico.
Here are the expected petrol prices in August 2019: