Currently, petrol and diesel prices are on track for cuts at the start of September.
With less than two weeks to go before prices are fixed, the latest estimate from the Central Energy Fund shows that the price of 95 unleaded petrol is due for a decrease of around 67c a litre, while the wholesale price of diesel could be lowered by 53c (0.05% sulphur content) and 77c (0.005%) a litre.
Petrol prices were cut by 15c a litre at the start of August, while wholesale diesel prices fell by 17c or 28c, depending on the sulphur content.
Fuel prices are now at their cheapest levels since January this year, with petrol (95) selling for R23.11 a litre in Gauteng, and R22.32 on the coast.
South African fuel prices are largely determined by international oil and fuel costs and the rand exchange rate, as oil is priced in dollars.
Oil prices have been under pressure – despite concerns that increasing tensions between Russia and Ukraine, as well as Iran’s threats to Israel, could disrupt supplies.
Traders are concerned about the declining oil demand in China due to weakening economic growth and the growing popularity of liquefied natural gas. Brent crude oil is currently trading at around $80 a barrel, from $85 a month ago.
Meanwhile, the rand has recovered all of its losses after a blow-out in the first week of August amid a global market mini-meltdown. It briefly strengthened to below R18.00 earlier on Thursday, after spiking to R18.62 more than a week ago. A month ago, it was trading at around R18.05.
The rand is being supported by a growing belief that US rate cuts will be faster and bigger than previously expected.
Fuel prices are usually changed on the first Wednesday of the month.