Cape Town — The latest unaudited data from the Central Energy Fund (CEF) presents good news for South African motorists as significant fuel price reduction is forecast for July.
Petrol prices for 93 and95 unleaded are expected to drop by approximately R1 per litre, with diesel and illuminating paraffin seeing decreases of about 30 cents per litre and 25 cents per litre, respectively.
The Automobile Association (AA) highlighted the positive impact on consumers, stating that lower fuel costs will ease financial burdens, particularly for vehicle owners. These reductions are primarily driven by international product pricing rather than currency fluctuations, TimesLIVE reported.
“A second consecutive drop in fuel prices is good news for consumers, motorists and the economy. Lower fuel prices will especially benefit South Africans with vehicles who will save a little on their monthly transport budgets,” the AA said.
In addition to the price cuts, concerns about sustained high fuel costs persist. The AA emphasised the need for a sustainable solution to mitigate future price hikes, urging the incoming administration to conduct a transparent review of the fuel pricing structure.
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“As the country awaits finalisation of the new cabinet, we implore the new administration to prioritise finding sustainable solutions to rising fuel costs by conducting a long overdue and transparent review of the fuel pricing structure,” the AA said.
According to IOL, should the R1 petrol price cut materialise, South Africans will now pay around R22.91 for a litre of 93 unleaded inland and R23.25 for 95 unleaded, while 95 unleaded will cost R22.46 per litre on the coast.
This marks the second consecutive month of significant petrol price reductions, following a decrease of R1.24 per litre in June. Despite these decreases, petrol prices had risen nearly R3 per litre between January and May, leaving July prices approximately 70 cents higher than the start of 2024, while diesel increased by 33 cents per litre during the first half of the year.
July’s petrol and diesel price decreases are driven largely by international oil price weakness earlier in the month, although the stronger rand performance later in June did help to mitigate oil’s recovery in the second half of the month.
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Compiled by Matthew Petersen
