The fuel price outlook for August is a mixed bag, with petrol prices predicted to decrease and diesel costs set for a significant increase.
Data from our friends over at the Central Energy Fund (CEF) shows an over-recovery for petrol that points to potential decreases of 30 cents for 95 Unleaded and 34 cents for 93 Unleaded.
Diesel, which powers most bakkies and some SUVs such as the Toyota Fortuner, will see increases in the region of 62 cents for 500ppm and 64 cents for 50ppm.
The anticipated August fuel price adjustment is primarily due to movements in international product prices, while a slightly stronger rand is providing relief of around six cents.
But why is petrol going down and diesel up? These prices are determined by international demand patterns, which usually see diesel prices spiking in the northern hemisphere’s summer and winter periods. In the summer months, higher diesel prices can be observed due to increased travel and economic activity.
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The past month has seen relatively stable international oil prices, with Brent Crude trading in the range between $67 and $70 per barrel, after averaging $69 during the previous review period.
July’s fuel price increase was the first in five months, with petrol rising by between 52 cents and 55 cents, and diesel going up by 82 cents to 84 cents.
On the upside, petrol is only marginally more expensive than it was at the beginning of this year, when 95 ULP cost R20.80 at the coast. The predicted decrease for August will bring prices back into line with where they were in January 2025.
IOL Motoring
