Cape Town — Early fuel price predictions for July point to reductions in petrol, diesel and illuminating paraffin prices, bringing relief to motorists’ pockets for a second consecutive month.
While it is too early to confirm whether these prices will hold, the current over-recoveries show that July will bring significant reductions across all fuel grades for South Africans.
Data from the Central Energy Fund (CEF) show that petrol prices could come down by R1.47 – R1.52 per litre, while diesel (0.05% and 0.005%) is expected to be cut by 92 cents – R1.02 per litre, The Citizen reported.
Meanwhile, The South African reported that if market conditions were to remain consistent for the remainder of the month – an unlikely scenario with the rand/dollar exchange rate ever fluctuating and the oil price changing – 93 petrol would decrease a decrease by R1.40 while 95 petrol will decrease by R1.35.
Diesel will decrease between a 80 to 89 cents per litre and illuminating paraffin is expected to decrease by 76 cents.
July is expected to see an even more significant decrease in fuel price to the one implemented in June if early data pans out accurately 🥳 Here is a provisional look at what motorists can expect to pay from early July 👀https://t.co/Gc7E9h2b0T
— CARMAG (@CARmagSA) June 11, 2024
Fuel prices are determined by a number of factors including the international price of oil, and the rand/dollar exchange rate. The CEF, who reports directly tot he Department of Mineral Resources and Energy (DMRE), looks at the data to determine the fuel prices.
Markets are currently on edge after the African National Congress (ANC) failed to win a majority rule, and now seeks to form a Government of National Unity (GNU). This led to the rand weakening, but the global oil price remains at $80 a barrel (R1 491), which has contributed to the over-recovery in fuel prices.
With the final fuel prices for July only set to occur at the end of June, there is still room for the market conditions to swing, meaning either further or less reductions. The final decision for the fuel prices lays in the hands of the DMRE.
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Compiled by Matthew Petersen
