Skip to main content

Expect another increase in the petrol price next week

| Economic factors

Motorists can expect a fuel hike next week, thanks largely to a softer rand against the US dollar.

The latest data from the Central Energy Fund (CEF), published on the 23 August, shows petrol (95 ULP inland) rising 18 cents per litre, with 93 petrol up 16 cents a litre, while both 0.05% and 0.005% Sulphur diesel are expected to climb 18 cents a litre.

The rand halted its winning streak late last week after US President Donald Trump tweeted about South Africa’s land politics, igniting concern the country may become the next target for US sanctions, Bloomberg reported.

The local unit had previously been caught in a trap of broad emerging market frailty, while the local economic outlook remains gloomy with some analysts suggesting that the country may be entering a recession.

Bloomberg wrote that investors are bracing for a deterioration in relations between South Africa and the US, following president Trump’s comments, citing Goldman Sachs Group Inc.

Goldman said it is also focused on whether the country’s growth recovery remains underway, maintaining its three-month forecast for the rand at R13.50 per dollar.

In trade on Monday, the rand was 0.40% weaker against the US currency, at R14.26.

Reuters reported that US crude was slightly lower in trade on Monday, at $68.68 a barrel, with Brent crude down to $75.76 a barrel following a strong performance last week. It warned of the prospect of lower oil supply from Iran after the US withdrew from a nuclear accord it signed with Iran in 2015, while it also imposed sanctions on Iran’s oil industry and other exports.

The oil price has traded in a range since July, however, and is therefore likely to have minimal impact on the petrol price for September.

Petrol has climbed steadily since the beginning of the year, from R14.20 for 93 petrol, and from R14.42 for 95 petrol.

The Department of Energy is expected to announce the petrol price figures for September later this week, which will then come into effect on September 5, 2018.

Fuel August official September expected
95 Petrol R16.03 R16.21
93 Petrol R15.82 R15.98
0.05% Diesel (wholesale) R14.41 R14.59
Pin It

Related Articles

Budget: Liquor, cigarettes to cost more, no inc...

By: IOL Finance 2024 Budget made provision to raise R15 billion in taxes to alleviate fiscal pressure and support debt stabilisation.

Retail consumers now seeking value as cost of l...

By: IOL COST-of-living pressures muzzled sales volumes for retailer Spar’s Southern African business, including South Africa, although group turnover, which also accounts for its stores in Switzerland, Ireland and England, was up 9.3% for the fiv...

Excessive heat could result in higher food pric...

By: Given Majola - IOL The excessive heat across South Africa currently is a significant concern for the farming sector, according to the Agricultural Business Chamber (Agbiz).

Budget 2024: South Africans should not expect a...

By:Dhivana Rajgopaul - IOL Amid the budget deficit not moving in the right direction, a tax specialist has said South Africans can expect Finance Minister Enoch Godongwana to raise the price of beer and cigarettes, but being an election year, no ...

Retail sales cool in 2023 with consumers still ...

By: Siphelele Dludla - IOL Consumers in South Africa are expected to continue struggling this year under the brunt of stubbornly high inflation, rising cost of borrowing and weak consumer confidence after retail activity plunged in 2023, in spite...