Big petrol price cut expected in September

Picture: IOL file

Picture: IOL file

Published Aug 16, 2022


Pretoria - Motorists could be in for a big petrol price cut in September based on current unaudited mid-month data from the Central Energy Fund.

On Monday, the Automobile Association of South Africa (AA) indicated that 95 unleaded petrol is expected to drop by around R2.60 per litre, while 93 unleaded might go down by R2.45 per litre.

The wholesale price of diesel is expected to decrease by around R2.30 a litre and the price of illuminating paraffin by almost R2 a litre.

The price of oil this year soared to its highest since 2008, climbing above $139 a barrel in March after Western countries imposed severe sanctions on Russia over its invasion of Ukraine.

The easing of global oil prices followed weak manufacturing data in major economies which highlighted the darkening global economic outlook.

The global economic downturn means a bleak outlook for fuel demand, and the latest economic indicators are pointing to a serious decline in global manufacturing output.

The US economy has entered a technical recession after contracting for the second consecutive quarter as it shrank by 0.9 percent in the three months to June.

The manufacturing Purchasing Managers’ Index (PMI) fell into contractionary territory in South Africa, falling to 47.6 points in July from 52.2 points in the prior month, its lowest in a year.