August's petrol price predictions lose some steam

In the week or so that’s elapsed since we last took a look at the expected petrol price adjustments for August, things appear to have taken a nasty turn. Not that nasty — we’re still on for a price decrease compared to July — but the numbers aren’t as exciting as we’d like. Still, not many drivers would say no to a R1.50/l price cut.

We’re all working from home this August, right?

That’s assuming it’s still R1.50/l by the time August rolls around. See, the figures below are generated by the Central Energy Fund (CEF) and are merely predictions for the upcoming fuel price adjustments. The price of petrol and diesel is officially adjusted on the first Wednesday of the new month — Wednesday, 5 August.

The CEF, in conjunction with the Department of Mineral and Petroleum Resources (DMPR), tracks the economic figures that influence the price of fuel the most. In this case, that’d be the average price of oil globally, as well as the Rand/US Dollar exchange rate. This means the expected adjustments can change day-to-day.

It’s the downward trend that concerns us most. Last week, early figures for August saw petrol drivers staring down a R2+/l decrease, while diesel touched R3/l. It’s a very different story in the latest fuel price snapshot, which now predicts a far smaller decrease of approximately R1.55/l for petrol, and even less for diesel.

We’re afraid to say that these figures could continue to worsen as we work our way through July. After settling back down to what we might call ‘normal’ in the last few months, the price of oil has recently flared up again. Countries are clutching at their reserves in fear of another major shortage. And we’re feeling the sting.