After August brought South Africa its first petrol price cut in months, September has some big shoes to fill. And, according to the Central Energy Fund’s stats, it could be on track to do just that. Investec’s chief economist Annabel Bishop also believes that inflation may be slightly lower than originally expected, leading to a big cut where it matters most – petrol prices.
Wake me up when August ends
On Wednesday, Bishop posted her monthly predictions, stating that South Africa is seeing lower food inflation prices, with grains as the leading factor. Because of this, Bishop expects purchasing price and consumer price inflation to go down over the months ahead.
“Falling food and energy prices since the end of Q2.22 have contributed to a moderation in commodity prices overall on the month, with gasoline prices down -15.2% and Brent crude oil -12.8%, and so large petrol (R2.72/litre) and diesel (R2.48/litre) price cuts building for SA,” she said.
Yes, you read that correctly. We’re facing a potential decrease of R2.72/l for petrol and R2.48/l for diesel. Of course, these numbers are anything but official right now, but they give us some idea of what to expect. Official fuel prices are determined by the Department of Energy at the end of the month, taking in all variables. Still, it doesn’t hurt to get a little excited.
We’ll update you on 1 September, once the Department of Energy makes its official changes for the month ahead.