South African motorists could receive modest petrol price relief in August, but a sharp diesel price increase is expected to raise transport costs and add to inflationary pressures.
South African motorists could see marginal relief at the pumps In August, but businesses and consumers are likely to feel the impact of significantly higher diesel prices as global oil market volatility continues to influence local fuel costs.
According to Frank Blackmore, Lead Economist at KPMG South Africa, the latest Central Energy Fund over recovery and under recovery data indicated that petrol prices are expected to decrease slightly, while diesel and illuminating paraffin are on track for substantial increases.
"Based on the current Central Energy Fund numbers for the over under recovery on fuel prices, petrol prices seem to be going down by between R0.20 and R0.26," Blackmore said.
He added that the outlook for diesel painted a very different picture.
