By Anita Dangazele
- Diesel’s projected price cut for August dropped by more than 35 cents a litre in a single day of trading.
- Petrol’s projected cut nearly halved overnight, as oil prices reacted to Donald Trump’s comments on the Iran ceasefire.
The fuel discount South Africans were expecting next month just got a lot smaller, in one day.
New numbers from the Central Energy Fund show the expected cut for diesel dropped sharply between Tuesday and Wednesday this week.
It fell from about 193 cents a litre to under 158 cents, a drop of more than 35 cents in a single day. Paraffin’s expected cut fell in the same way, from 222 cents to under 187 cents. Petrol’s expected cut also shrank, from close to 189 cents to under 175 cents.
Looking at Wednesday on its own, diesel and paraffin prices actually moved into territory that would mean a price increase, not a decrease, if that one day were the whole story. Petrol stayed headed for a cut, but a much smaller one than before.
The timing matches comments made by US President Donald Trump on Wednesday.
He said the ceasefire between the United States and Iran was “over,” after Washington struck Iranian targets overnight. Oil prices jumped within hours of him speaking.
South Africa buys almost all its fuel from overseas. When oil prices rise elsewhere in the world, it shows up at our pumps a few weeks later. The rand also lost a little value against the dollar over the same days, adding more pressure.
The final fuel price for August only gets set once the whole month’s numbers are averaged out, so there is still time for things to improve before then. But the last two days have moved in the wrong direction for anyone filling up a tank.
Pictured above: A fuel pump at a service station. This image is used for illustrative purposes.
Image source: Anita Dangazele
