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Petrol price breather for motorists?

Cape Town - Although a petrol price decrease looks likely in South Africa at this point, it is still not a clear cut situation.

Indications from data released by the Central Energy Fund on Monday point to a possilbe decrease in the petrol price of 20c early in September.

However, the rand weakened to a five-week low of over R10/$ and international oil prices remain in the spotlight due to the turmoil in Egypt.

The daily overrecovery on August 16 was 14.205c/l, while the average for the period August 2 to August 16 was an overrecovery of 25.244c/l.

It is likely that the SA petrol price will be coming down by between 25 cents and 35 cents early in September, economist Dawie Roodt of the Efficient Group said last week.

He responded to rumours about a possible 27c/litre increase in the petrol price on the first Wednesday of September if conditions continue the way it stands now.

"The rand was relatively strong the past few weeks, enough to counter the (recent) increase in oil," Roodt said.

"After the expected fall in petrol price, I see it mostly flat for the rest of the year."

He said the recent petrol price increase is, however, already affecting consumption patterns.

"The consumer is under pressure," he said.

According to economist Mike Schüssler of Economists.co.za, the price of oil may, however, mean that a possible decrease in the SA petrol price could be much smaller.

Peter Noke of Royale Energy, said last week that this week will be critical to indicate what will happen to the SA petrol price in September.

“Ideally you would want international crude prices to decrease to below $100 per barrel and the rand to be below R10 to the dollar,” said Noke.

On Monday afternoon, however, the rand was trading at R10.19 against the greenback, down 2.17% from Friday's New York close, while oil was trading at $110.70 a barrel.

- Fin24

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