Cape Town – South African motorists could still see a petrol price cut in August, although rising tensions in the Middle East are creating uncertainty.
According to the latest Central Energy Fund (CEF) data, petrol remains in over-recovery, pointing to price decreases of 83 cents per litre for Petrol 93 and 79 cents for Petrol 95. However, diesel is expected to increase by 22 to 45 cents per litre, while illuminating paraffin could rise by 21 cents.
The outlook has become more uncertain as renewed conflict involving the United States and Iran has pushed global oil prices higher, raising concerns about supply disruptions through the Strait of Hormuz. A sustained rise in crude oil prices or a weaker rand could reduce or eliminate the projected petrol price cuts before month-end.
Despite these risks, earlier declines in international fuel prices and a relatively stable rand continue to support lower petrol prices for now.
Meanwhile, Cabinet has approved a draft Strategic Petroleum Stocks Policy aimed at strengthening South Africa’s energy security. The proposal would require fuel wholesalers and importers to maintain 21 days’ worth of fuel stocks, while the state would hold reserves equivalent to 60 days of net fuel imports, with a long-term target of 90 days.
The Department of Mineral and Petroleum Resources is expected to announce the official August fuel price adjustments at the end of the month.
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Compiled by Betha Madhomu
