Fuel price is going down at midnight today
JOHANNESBURG – South African motorists will be enjoying some relief at filling stations when the petrol price drops.
Petrol is expected to drop by 86 cents a litre, diesel by 68 cents, and illuminating paraffin by 58 cents at midnight on Tuesday, 2 July.
Why does the fuel price go up and down?
This fluctuation has to do with lower international fuel prices in June. Sanisha Packirisamy, an economist at Momentum Investments said that the price of fuel in South Africa is set monthly by the state-owned entity, the Central Energy Fund. It’s based on a number of factors, including international petroleum prices, which are linked to the supply and demand of crude oil, the rand/US dollar exchange rate, and the cost of distributing petrol in South Africa – which includes the cost of ensuring fuel gets from the oil tankers to your car.
South Africans are spending more on fuel than on cars
“As a nation – we spend a lot on fuel. In fact, according to the latest motor trade sales figures from Statistics South Africa, we’re spending more on fuel than on cars,” said Packirisamy.
Packirisamy added that while petrol price drops offer some financial reprieve, it’s a good idea to prepare for potential fuel fluctuations by determining how much money you currently spend on petrol, and set aside about 10 per cent of this value each month as a buffer against future increases.”
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