After back-to-back steep increases, the petrol and diesel prices have calmed down. Petrol is looking likely for a small increase while diesel is showing a good decrease as we head into September 2021.

The monster fuel prices increases in July and August 2021 really upset everyone. We’ve never seen such anger on our social feeds. The good news is that indications suggest September’s looking much better.

Granted, the price of petrol is going to increase slightly, but the good news is we have a potential price reduction for diesel and paraffin.

Based on the unaudited mid-month fuel price data released by the Central Energy Fund, the AA says, “the current picture shows petrol increasing by around four cents a litre. On the upside, diesel is indicating a 16 cent decrease, with illuminating paraffin down by ten cents.”

“The Rand’s average exchange rate was virtually flat against the US dollar in the first two weeks of August – it has moved less than three cents. But the local currency is trending weaker, and this may weigh more heavily against the fuel price by month-end,” the AA notes. “Oil fell throughout the first week in August, flattened out, and subsequently fell further.

If this trend is maintained, there is a possibility of price decreases for all fuel grades by month end. This would bring some welcome relief after last month’s heavy increases.” OPEC had limited oil production due to decreased demand during the pandemic, but announced in July that it would increase output by 400 000 barrels a day from August until the previous restriction had been eliminated.

The SAPREF refinery in Durban which was shut down underforce majeuredue to the recent unrest had been slated for re-start on 21 July, and that the refinery had indicated this would take around ten days to complete.

“We therefore don’t anticipate fuel shortages related to either the refinery or bulk transport of fuel by road – indications are that the N3 corridor between KwaZulu-Natal and Gauteng is stable and has not experienced significant disruptions since it was re-opened, which is encouraging,” the Association concludes.

Further Reading

SA Petrol Price– Where Does Our Money Go?

5 Ways to Beat the Fuel Price Hike

Most Fuel Efficient Budget Cars in SA

Most Fuel-Efficient Double-Cab Bakkies in SA

5 Fuel-Saving Car Features & How They Work

Most Fuel Efficient Budget Cars in SA

Most Fuel Efficient Diesel Cars in SA

Most Fuel Efficient Petrol Cars in SA