Fuel cut on the cards

Johannesburg - Fuel prices could fall again this month, according to some analysts.
   
The Energy Department is expected to announce new fuel prices on Friday July 9. Petrol, diesel and paraffin are expected to cost a few cents less.
   
"We're looking at the petrol price coming down by between 15 and 18 cents a litre (c/l). We expect diesel to come down by between 15 and 16 cents a litre and paraffin to come down by about 12 cents a litre," said Reggie Sibiya, Fuel Retailers Association CEO.
   
Econometrix senior economist Tony Twine said he was expecting a petrol price reduction of about 18c/l depending on whether or not the Energy Department used the same cut off date for calculating the price changes.
   
Friday's fuel price announcement comes a few days after the normal announcement date, as the Energy Minister had wanted prices to remain the same for the duration of the Soccer World Cup.
   
"I'm only guessing as to whether they also extended the closing date of the accounting period. If it is up to today (Thursday), then the price we're expecting might be different. We're looking at the cost of diesel coming down by about 15c/l and paraffin by 12 c/l," said Twine.
   
Meanwhile, Sibiya said their members did not report any significant changes in demand during the Soccer World Cup.
   
"Our members did not necessarily see increases in demand because a lot of the tourists have been using buses as opposed to cars. So the impact of the World Cup on us was not that huge," Sibiya said.
   
Twine suggested that fuel suppliers might have benefited from the extended period of June's fuel prices.
   
"There's a slight cash flow advantage for fuel suppliers that the old price would have been in position. There's no permanent gain or loss however to fuel users and suppliers," he said.
   
Prices announced on Friday will become effective on July 14.
   
- I-Net Bridge