Fin24

Petrol price could drop further in July

2012-06-19 15:44

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.

Comments
  • gerald.king.589 - 2012-06-19 15:50

    Lotto also pays R30 R4000 whatever to euphemise extortion.

      Preshen - 2012-06-20 14:35

      Do not fill-up your tanks until the price drops

  • Mzalacousin - 2012-06-19 15:51

    Good news for a change

  • mdubane.dube - 2012-06-19 15:55

    We need this

  • Vince - 2012-06-19 16:04

    That would mean a few more 2m's when we get to Moz on the 5th of July!!!

      isabel.ashe.7 - 2012-06-19 18:07

      You know your beer..2M ...WITH SOME GOOD FOOD TOO.

  • charmaine.mcdonald2 - 2012-06-19 16:30

    This is good news, but the taxi fares have already been increased, so this will not help the users of public transport.

      konstabel.koekemoer - 2012-06-20 14:15

      So true, Taxi bosses are quick to up the prices whenever the fuel price increases but never drop them. When I hear what people are paying now for short trips it is really a huge rip-off. We need more more efficient and safe transport for the people

  • nosiphom.mazibuko - 2012-06-19 16:31

    Pass on only 50% of the cut to us and use the rest instead of e-tolling!

  • lulama.makopo - 2012-06-19 16:47

    good news ,if i may ask is the taxi drivers going to reduced the price of taxi fare?

      nosiphom.mazibuko - 2012-06-19 16:51

      Nooooooo

  • clive.kihn - 2012-06-19 16:53

    Instead of dropping the price by so much, govt should up the levy by 10-12 cents/l to make up for the e-tolling shortfall. It will happen eventually so they might as well do it at a time when we won't really feel it as much.

      clive.kihn - 2012-06-19 18:03

      As I said, thumbs-downers, the levy WILL go up, so don't say you weren't warned.

      konstabel.koekemoer - 2012-06-20 14:18

      So true, the fuel levy will even go up more if e-tolling is implemented. The system will be so costly to run and so few people will pay that the operating costs will end up more than what they are collecting.

  • arthur.hugh - 2012-06-19 16:56

    Yeah then next month it'll go up 94c.

  • freddy.vanwijk - 2012-06-19 16:58

    Even if the price drops that much, the prices in general will not come down in order to protect profits. To give 50% instead of e-tolling sounds good, but the warning signs I'm getting is that one will only increase corruption elsewhere with little or no oversight at all. Businesses must now make sacrifices (reduce profit margines) in order to lure customers into supporting them. If they don't they will sit with surplus stock, especially certain foodstuffs and will be compelled to take an eventual loss.

  • patrick.makgeledise - 2012-06-19 17:05

    Gud for da motorists,yeah. Bt for da for ppl wh alwys use public transport, bad for thm, cos taxis fares wont drp dwn.

  • patrick.makgeledise - 2012-06-19 17:05

    Gud for da motorists,yeah. Bt for da for ppl wh alwys use public transport, bad for thm, cos taxis fares wont drp dwn.

  • patrick.makgeledise - 2012-06-19 17:06

    Gud for da motorists,yeah. Bt for da for ppl wh alwys use public transport, bad for thm, cos taxis fares wont drp dwn.

  • Malavi10 - 2012-06-19 17:08

    is that all?

  • alayren - 2012-06-19 17:40

    Cool, good news tuesday

  • TshilidziPhuravhathu - 2012-06-19 17:44

    Now can taxi prices go down?

  • TshilidziPhuravhathu - 2012-06-19 17:53

    Now can taxi prices go down?

  • courtney.baird.71 - 2012-06-19 19:25

    but the prices of food will not come down....that is the problem!!!!!!!!!!!!!

  • courtney.baird.71 - 2012-06-19 19:26

    what about the price of gas??????

  • lana.crous - 2012-06-20 05:31

    Pfew... a bit of good news at last

  • Stephen - 2012-06-20 07:28

    It shouldn't have got as high as it did in the first place..................bottom line.

  • olebogeng.diratsagae - 2012-06-20 07:34

    lol.thank u once more.happy my trip to Durban is on now.Economic freedom

  • triumphant.voice.58 - 2012-06-20 10:01

    Well, lower petrol price less steep increase on the rate of inflation - not all bad news.

  • michael.moolman.7 - 2012-06-20 12:50

    That ominous comment in the third to last paragraph;'provided the government doesn't introduce a new levy'. Maybe there is a little more in this story than meets the eye. Remember, funds need to be recovered for the etoll debacle.

  • Sbonelo - 2012-06-21 12:35

    there's a huge drop in da oil prices,,bt a little drop in da fuel price,,,,,,,dis is a joke,,,,,then they blame da under performing rand 4 the insufficient price drops,,,,,,fact,,,there's a lot happening wit dis pricing dan we wil eva knw,,,,,wen oil prices where at dis level,we were luking at 9 rand a little,,,,r they already implementing da etoll collecting already,nd we dnt knw bout it?

  • Sbonelo - 2012-06-21 12:36

    there's a huge drop in da oil prices,,bt a little drop in da fuel price,,,,,,,dis is a joke,,,,,then they blame da under performing rand 4 the insufficient price drops,,,,,,fact,,,there's a lot happening wit dis pricing dan we wil eva knw,,,,,wen oil prices where at dis level,we were luking at 9 rand a little,,,,r they already implementing da etoll collecting already,nd we dnt knw bout it?

  • zinhle.s.gumede - 2012-06-29 13:09

    hurey!!!!!, well thats if it drops

  • edward.herbst - 2012-06-29 14:31

    For every action there is an equal and opposite reaction ............so what will go up???????

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