According to unaudited mid-month fuel price data from the Central Energy Fund, both grades of petrol could decrease by between 9 and 13.5 cents.

Meanwhile, diesel prices are expected to see a larger reduction of between 34 and 36 cents per litre, with illuminating paraffin possibly dropping by 26 cents.

A likely decline in demand, driven by the trade war between the United States and China, has caused Brent crude oil prices to fall back to $63 per barrel.

Makwe Masilela, Chief Investment Officer at Makwe Fund Managers, has cautioned that further weakness in the Rand could alter the outlook.

“The Rand has just weakened. As we discuss fuel prices now at $63 a barrel and consider the Rand flirting with almost 20 to the Dollar, that might pose a problem going forward. As a net importer, if oil prices decrease by 2%, for example, but the Rand weakens by 4 or 5%, it becomes a zero-sum game. The key is to see oil prices decline for positive reasons, such as increased production. However, a stronger Rand is also essential for us as a net importer, as it would make our lives much easier. The figures being released now, or those just released, do not account for the Rand's performance in the first two days or so.”

--SABC--