By Anita Dangazele
- Diesel is now on track to go up by more than R1 a litre in August, after weeks of pointing toward a price cut.
- Petrol’s expected cut has shrunk to just over 20 cents a litre, far smaller than what was expected earlier this month.
Three weeks ago, diesel drivers were told to expect good news in August. That good news is gone.
New numbers from the Central Energy Fund, the body that tracks fuel prices, show diesel is now set to go up by around R1.47 a litre for one type, and R1.27 a litre for another. Illuminating paraffin, used by many households for cooking and heating, is also now heading for an increase of about R1.17 a litre.
Petrol drivers still have a cut coming, but it’s shrunk to almost nothing. What was once expected to be a saving of more than R2 a litre is now sitting at just 21 to 26 cents.
Why did this change? It comes down to two things: the price of oil on the world market, and the value of the rand. Oil has become more expensive because of ongoing conflict in the Middle East, especially since 7 July, when US President Donald Trump said a ceasefire with Iran was over. Since then, oil prices have climbed, and South Africa’s fuel prices follow the world oil price closely. On top of that, the rand has also weakened, from R16.25 to the dollar on 7 July to R16.71 now, making imported fuel even more expensive.
If you look at just one day, Monday, 27 July, the picture is even worse. On that single day, every type of fuel, including petrol, pointed to a price increase, not a cut. Petrol’s small saving is only still there because of better days earlier in the month. If oil prices keep rising, that small saving could disappear completely before the new price is announced.
The new fuel price will be announced in the coming days and will take effect on Wednesday, 5 August.
Pictured above: [no image provided]
Image source: File
