Will we see another petrol price decrease?

Motorists are sure to be smiling from ear to ear at the news of another potential petrol price decrease next month, but it may not be as high as previously expected. This follows the petrol price drop of 99 cents earlier this month.

With quite a bit of focus on the fuel industry of late, both with the strike and the recent consecutive fuel increases and decreases, the industry is at best volatile at the moment.

Though a similar increase like the one we saw last month is expected, quite a bit can still happen within the next week, before the announcement is made.

“Petrol is slated for a reduction of up to 69 cents a litre, diesel 94 cents, and illuminating paraffin is showing a potential drop of 92 cents,” reported the Automobile Association (AA) as part of their mid-month prediction report.

The AA further stated that the fuel price for September will depend on whether the Rand can continue to counter upward trends in international petroleum prices.

Analysts noted that should this decrease come to fruition it would provide much needed relief for the agricultural sector who have been significantly hit by the country’s severe ongoing drought.

“Although lower prices would have a different effect on field crop and livestock farmers, depending on how their operations were set up, there was potential to lower production costs, thus lessening strain on cash flow. Petrol and diesel are commonly used by farmers for tillage, harvesting, machinery and transportation,” reported BDLive.

Further reports have been circulating that while fuel seems to be decreasing at this stage, motorists need brace for a steep increase later in the year, but at this juncture, Layton Beard public relations manager of the AA suggested it is all speculation.

“A lot can happen in two weeks, making it difficult to confirm the decrease. For all we know there could be no decrease. That being said, making a call on the state of the fuel price in months to come is even harder, and there is never any guarantee,” added Beard.

For more information on the expected fuel price decrease, click here.