Fuel price outlook for August: Another diesel price shock expected

Month-end data from the Central Energy Fund currently points to an unchanged price for 95 Unleaded and a five cent decrease for 93 Unleaded. Any furtherpetrol pricecuts have been put on hold as the resumption of hostilities in the Middle East wreaked havoc on oil markets this month, while diesel prices are looking set to shoot up in August. from the Central Energy Fund currently points to an unchanged price for 95 Unleaded and a five cent decrease for 93 Unleaded.

It is a far harsher reality for diesel customers, with current data pointing to increases of between R1.75 for 50ppm and R1.91 for 500ppm. However, a potential wildcard is the Slate Levy, a mechanism that helps compensate fuel companies for oil price fluctuations in the preceding month. If the Slate Levy sees a significant reduction from the current R1.14 per litre, then a more substantial petrol price reduction could be on the cards.

However, given that it compensates for oil price volatility, a decrease in the levy is certainly not guaranteed. The official petrol and diesel price adjustments for August will be announced by the Department of Mineral and Petroleum Resources early next week. TheMiddle East warhas wreaked havoc on South African fuel prices this year, with sharp increases inAprilandMayfollowed by some relief in July.