Diesel prices are set to spike once again in August.
The Middle East war has wreaked havoc on South African fuel prices this year, with sharp increases in April and May followed by some relief in July.
While a peace deal did bring some relief last month, the resumption of hostilities in July means it is likely to be a long time before petrol and diesel prices retreat to pre-April levels.
While the latest snapshot from the Central Energy Fund currently points to petrol price decreases of between 21 cents (95 Unleaded) and 26 cents (93 Unleaded), the strong under-recoveries seen over the past week are likely to erode this further by month-end, with our calculations pointing to only marginal decreases in the region of five cents.
It is a far harsher reality for diesel customers, with current calculations pointing to increases of between R1.63 (50ppm) and R1.80 (500ppm). These predictions are based on the assumption that the under-recoveries will persist at their current levels. Should oil prices continue to retreat, as they have done over the past day, the increases could be in the R1.30 to R1.50 range.
