RELIEF

Although the petrol price outlook has deteriorated in recent weeks, diesel customers can look forward to a significant price reduction from next Wednesday, September 3.

Late-month data from the Central Energy Fund (CEF) is pointing to diesel price reductions of around 55 cents in September, while petrol looks set to go down by between 4 cents (95 Unleaded) and 12 cents (93 Unleaded).

However, with a slight under-recovery having developed on 95 Unleaded petrol in recent days, it is possible that a slight price hike could be implemented for this fuel type.

These predictions are based on unaudited data from the CEF. The official fuel price adjustments will be announced by the Department of Mineral and Petroleum Resources early next week.

The diesel price decrease will be a welcome relief for the transport and agriculture industries and will help keep general inflation at bay, given how many goods and services are linked to transport costs.

Consumer Price Inflation (CPI) increased to 3.5% in July, from 3.0% in June, reaching its highest level since September 2024. While this was largely fuelled by food prices, particularly beef and vegetables, July’s diesel price increases of between 63 and 65 cents contributed to the uptick. This followed a rise of 84 cents in June.

With a wholesale price of R19.28 at the coast, 50ppm diesel currently costs 60 cents more than it did in January; however, September’s predicted price decrease will bring it back into line.

Petrol prices have seen relative stability this year, with 95 Unleaded currently costing R20.76 at the coast, close to January’s level of R20.80.

September’s price adjustments come mostly as a result of movements in international petroleum and diesel prices, while a marginally stronger rand has provided relief to the tune of around 1.5 cents.

While international petrol prices have been muted, diesel prices have fallen due to rising inventories, Bloomberg reported.

The respite in fuel prices will ease the burden on consumers as DebtBusters’ Debt Index for the second quarter noted the financial strain impacting several households.

The index found that 95% of individuals who sought out debt counselling during the quarter had taken out personal loans, while more than half (54%) relied on one-month payday loans.

The data also showed that since 2016, electricity tariffs have skyrocketed, climbing more than two-and-a-half times, while petrol prices surged by 75%. Municipal rates in major metropolitan areas are also escalating each year at double-digit rates, compounding the financial strain on households.

Source link