Relief At the Petrol Pumps Coming
Petrol And Diesel Price Set To Drop
After what seems like a constant stream of price hikes there will finally be a small reprieve for car owners as both the petrol and diesel prices are set to drop in September.
According to the Central Energy Fund the price of 95 will probably drop by R2.60; 93 will drop by R2.45 and diesel may drop by R2.30 per litre.
Petrol prices are normally adjusted in the first week of the month (on the first Wednesday) so we will soon find out if those figures are going to be accurate. They should be pretty close.
War in Ukraine and Driving Around In China
Oil prices recently went as high as $123 per barrel but are now down below $100 (at around $93/barrel).
This would make it a 6 month low since the war in Ukraine began. Tough times in China are one of the many factors that drive the price of oil up and down and with the economy slowing down there (with lock downs, big businesses reporting bad figures and having trouble) it actually benefits us here in South Africa.
America And Iran
Politics also plays a part in the price of oil as we have seen with the sanctions against Russian fuel hitting hard around the globe.
The USA and Iran have been trying to sort out their differences about the Iran nuclear program and what they can and cant do. If they do find success this will mean that Iranian oil can reenter many markets and no longer be under sanction. This will further drive the supply up and prices down as the US look for other sources of oil for international markets as they continue to assist Europe in squeezing Russia with sanctions.
The Rand however has been going through a volatile time vs the Dollar and since oil is bought in Dollars (not rand) that impacts on how things will look in the near future.
Those who use paraffin are also going to benefit as the price will probably drop by around R2/litre.