• Change of culture needed

    The right leadership will help SA shed its culture of violence, says Mandi Smallhorne.

  • 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

Loading...
See More

Petrol price could drop further in July

Jun 19 2012 15:44 I-Net Bridge

Related Articles

Petrol price relief for motorists

Minister: Big fuel price drop in June

Petrol price to rise steeply - again

Treasury allowed to be part of tolls case

India replaces China as Iran’s top oil buyer

Sizeable drop in petrol price expected

 
Johannesburg – The department of minerals and energy (DME) could implement a retail petrol price cut of about 73 cents per litre (c/l) on July 4‚ provided the daily under-recovery remains near the June 18 level.

The wholesale diesel (0.05% sulphur) price could drop by about 52c/l.

If a 73c/l decrease were to be implemented‚  this would lower the Gauteng retail petrol price to 1 094c/l from May’s record 1 222c/l.

The record for the wholesale diesel price of July 2008 was 1 143c/l and if a 52c/l cut is implemented‚ then it would be 1 021.55c/l in July 2012.

The year ago increase for petrol will ease to 10.3% in July from 14.1% in June‚ 26.2% in December and 29.4% in November.

The year ago increase for diesel will ease to 11.6% in July from 15.9% in June‚ 37.9% in December‚ and 34.2% in November.

Base effect and a continued strengthening in the rand and weaker international oil prices make year ago price declines before the end of this year likely‚ creating the space for the South African Reserve Bank to cut interest rates as consumer inflation dips back into the 3% to 6% target range.

May consumer inflation data will be released on June 20.

SA’s daily unleaded 95 octane petrol price over-recovery was 77.6c/l on June 18‚ while the diesel over-recovery was 55.8c/l.

An over-recovery means that the basic petrol price based on the daily product price and exchange rate is less than the basic fuel price used in the calculation of the monthly retail petrol price.

An over-recovery therefore implies that the retail petrol price will most probably be cut at the next monthly price adjustment‚ provided the government does not introduce a new levy or raise either the wholesale or retail margin.

The retail petrol price is adjusted monthly on the first Wednesday of the month in accordance with the previous averaging period's over- or under- recovery.

The current averaging period runs from June 1 to June 28 and a price announcement is due on June 29. The average over-recovery for the period June 1 to June 18 for petrol was 69.3c/l and the over-recovery for diesel was 49.2c/l.
petrol price  |  good news  |  oil

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
38 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

Top 10 richest musicians of all time

Check out the gallery to find out who they are!

 
 

Luxury living

10 of the most expensive things that will leave your jaw hanging!
Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote

Loading...