Cape Town – South African motorists can expect a drop in petrol prices in August due to lower global oil prices and a strengthening rand.
According to the Central Energy Fund, petrol 93 and 95 are showing over-recoveries of 28c and 24c per litre respectively.
However, diesel prices are set to rise, with wholesale increases of 66c (0.05%) and 64c (0.005%) per litre due to global shortages and seasonal demand.
The price divergence between petrol and diesel started in June after geopolitical tensions pushed oil prices up briefly, though crude has since dropped below $70 a barrel.
Bloomberg forecasts continued pressure on oil prices due to US tariffs starting 1 August and increased production from OPEC+.
Meanwhile, the rand has strengthened to around R17.55 to the dollar, aided by political stability after the DA agreed to pass the 2025 Budget following President Ramaphosa’s concession to remove an ANC official implicated in corruption.
Despite this, economist Annabel Bishop warns that upcoming US tariffs on South Africa could still negatively impact the rand in the coming weeks.
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Compiled by Betha Madhomu
