Petrol price set to drop another 73c
THE petrol price might be cut by 73c a litre on July 4 if the daily under-recovery remains near the June 18 level.
The Department of Energy said the price of wholesale diesel (0.05% sulphur) might drop by about 52c/litre.
If a 73c/litre decrease were to be implemented, it would lower the retail petrol price in Gauteng to R10.94/litre from May's record R12.22/litre.
The record for the wholesale diesel price of July 2008 was R11.43/litre. If a 52c/litre cut is implemented, it will be about R10.21/l next month.
Continued strengthening of the rand and weaker international oil prices make it likely that the petrol price will decline further before the end of this year, creating space for the Reserve Bank to cut interest rates as consumer inflation dips back into the 3%-to-6% target range.
May consumer inflation data will be released today.
The daily over-recovery for unleaded 95-octane petrol was 77.6c/litre on June 18; the diesel over-recovery was 55.8c/litre.
An over-recovery means the basic petrol price, based on the daily product price and exchange rate, is less than the basic price used in the calculation of the monthly retail petrol price.
The average over-recovery for June 1-18 for petrol was 69.3c/litre.