There may be some good news on the horizon for motorists. On Tuesday, oil prices fell amid fears of declining demand as one of the world’s top crude importers, China, faces a COVID-19 resurgence.
As the world’s second-largest economy and the biggest importer of oil faces renewed talks of lockdown restrictions, investors fear a global economic slowdown as China’s restrictions could reduce fuel demand, as per Business Day.
So what does this mean for motorists? The rise in Brent crude oil has been one of the major contributing factors to the rise in petrol and has soared by around 40% since Russia invaded Ukraine.
Motorists have been left cash strapped with petrol and transport costs being considered one of the biggest contributors to inflation in South Africa. July saw one of the highest fuel increases in South Africa, with motorists having to fork out an additional R2.57 for 95 octane and R2.37 for 93 octane.
However, the dip in the price of oil could see a fuel cut of 35 cents per litre in August, although analysts state it’s too early to determine an exact number, as per IOL.
Additional analysts claim that the latest figures show a cut of around 60 cents/litre for diesel and around 70 cents per litre for illuminating paraffin.
Also read:
Hermanus pearl and Franschhoek haven make best resorts in Africa list
Picture: Cape {town} Etc Gallery