The spirit of Christmas seems to be returning to South Africa: Some six months after recording our last decrease in the petrol price, July looks like it will give road users in Mzansi the gift they’ve been waiting for.
How much cheaper with the petrol price be in July?
The Central Energy Fund have released their data for the per-litre price forecast of both petrol and diesel. Each fuel looks set to fall in cost, with a reduction of almost R1 p/l (well, 90 cents p/l, to be precise) on the cards for petrol.
Diesel is also on course for a similarly-cheery result next month, with just over 70c-per-litre predicted to come off the current price. Even another moderate rise would have likely broken a few unwanted records in SA, but the experts now believe that motorists will have to fork out less to fill up their vehicles in a few weeks’ time.
Why the petrol price is set to drop
The forecast has come relatively early in the month. Usually, the halfway point of either the 15th or 16th on the calendar are used as reliable indicators. But with the current state of play, a decrease is as good as inevitable.
For a start, crude oil prices are plummeting. The demand has cooled off significantly over the past six weeks, and June would have also enjoyed a price decrease if not for the introduction of South Africa’s carbon tax.
Elsewhere, the Rand is behaving itself a little more this week: Chaotic ANC announcements about the reserve bank last week had ZAR trading above R15 to the US Dollar, before a more settled few days dragged the currency back into the fourteens. Its volatility will be a key player in deciding how much cheaper the petrol price for July will be.
Forecast petrol price for July 2019
Taking these forecasts into account, here’s what you can expect to pay for fuel from the start of July onwards:
This report does not necessarily reflects the opinion of SA-news.