The petrol price may drop by 10 cents a litre in July, economists said on Monday.
Absa Capital economic strategist Chris Hart said the drop could be attributed to a more stable rand and an easier international oil price.
”The petrol price is likely to drop by roughly ten cents a litre,” he said. However, the possible drop in oil prices should not be celebrated too soon.
”There is a chance that we may even get relief in the next month, but in the longer term we still expect oil prices to trend upwards because of what is happening to commodity prices as a whole,” said Hart.
The drop in oil prices was the second downward adjustment this year but the overall fuel price had risen more than it had dropped.
Hart said the diesel price was likely to increase next month.
”Globally the supply demand balance in the diesel market is tighter than in the petrol market.”
Another Absa economist, Monale Ratsoma, said the petrol price at the beginning of the year was R5,98. An adjustment of 23 cents in June saw the petrol price sitting at R7.24 a litre.
Ratsoma said the over-recovery so far was R9.35 cents a litre.
”We could be sitting at R7,14 a litre by July,” he said.
The price will be finalised on Friday. — Sapa