Massive petrol price CUT still on the cards for September

Cash-strapped South African motorists are still expected to receive what would be a second month of ‘good news’ from soaring petrol prices in early September.

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At midnight on Tuesday, 2 August, the petrol price (for both 93 and 95) dropped by R1.32 per litre, with diesel prices decreasing by between 88c and 91c per litre.

The Automobile Association (AA) has said that the outlook for petrol prices in the country is positive, with the potential for another even larger price drop in September IF the international oil price – one of the key drivers of high petrol prices – continues to decline.

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According to the BusinessTech website, Annabel Bishop, chief economist at Investec reiterated the AA’s view, stating that another petrol price cut of around R3.00 per litre is building for September.

Bishop noted that the oil price hit a high of $117 per barrel in June, but thankfully dropped to an average of around $105 per barrel in July.

As reported by The South African website HERE over the weekend, the oil price had dropped to $95 per barrel.

Oil price remains low – and consistent

Fast forward three days and the latest price at the time of publishing remains around the $95-$96 per barrel mark, strengthening hope there may well be reason for long-suffering motorists to smile in a couple of weeks.

The final price decrease (hopefully) will be confirmed later this month with the new price coming into effect at midnight on Tuesday, 6 September.

Go easy on the accelerator until then, Mzansi!

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