South Africans are expected to pay less for fuel in August, but economists warn that global oil market volatility could quickly reverse the relief.
South African motorists are expected to receive welcome relief at the pumps in August as lower fuel prices are forecast, according to mid-month data, but economists and financial experts have cautioned that the savings are unlikely to mark the end of household financial pressures.
The anticipated reduction follows a period of lower international oil prices and a relatively resilient rand, although continued geopolitical tensions and volatility in global energy markets mean the outlook remains uncertain.
KPMG South Africa Lead Economist Frank Blackmore said the expected decrease would provide some support to consumers, but warned that fuel prices remain highly sensitive to developments in international markets.
Blackmore said while recent movements in oil prices and the exchange rate had improved the outlook for motorists, ongoing geopolitical tensions, particularly in the Middle East, continued to pose upside risks to crude oil prices and could quickly reverse recent gains.
