Drop in price of fuel for August might be even bigger than initially predicted in South Africa

Drop in price of fuel for August might be even bigger than initially predicted in South Africa

TrafficSA released an infographic showing anticipated gasoline costs for the month of August on Twitter. The first decline estimate, which took into account the end of the gasoline tax holiday, was roughly R1.14. For many drivers, it now appears to be a little more “nice.”

95-Octane is anticipated to decrease by R1.22, while 93-Octane is anticipated to decrease by R1.19. Look at this:

It was previously reported that the Central Energy Fund’s unaudited data indicates an R1.89 drop for 95 unleaded gasoline in August. The rand’s interactions with oil prices will also have an impact on the final fuel prices in South Africa, which are anticipated to be officially announced next week. However, the most recent statistics indicate that the price will drop by more than R1 per liter.

The gasoline tax vacation is scheduled to end in August, which would lower the anticipated drop from around R1.89 to R1.14.

According to IOL, declining oil prices have increased the daily average over-recovery by more than 10 cents. If everything remains the same through Friday, a price drops closer to R1.40 may be possible.

Decreases in diesel are also anticipated. The expected decrease for 50 ppm is R1.52, however when the gasoline tax holiday ends, this will drop to about 77 cents. However, if oil prices remain the same, this reduction might increase from 77c to almost R1.

All of these are forecasts based on existing patterns, but the full significance won’t be apparent until the Department of Energy releases its gasoline price announcement the following week.

The reductions aren’t as significant as one might hope for because the gasoline tax holiday ends in August.

“The Association further notes that despite the forecast decreases, fuel prices in South Africa remain high and that the previous sizable increases will still impact the economy in coming months.”