The Central Energy Funds (CEF) latest unaudited data indicates that fleet owners and motorists are in for more fuel price relief at the pumps in July.
According to the Automobile Association (AA), the latest CEF data shows that the price of all types of fuel is expected to drop, with particularly significant decreases in petrol prices on the cards.
A decrease of fuel prices in July will mark the first time this year that prices have fallen in two consecutive months, the AA said in a statement on Thursday.
According to the latest unaudited data from the CEF, ULP93 and ULP95 are expected to drop by around R1 per litre, while diesel and illuminating paraffin prices are likely to drop by around 30cents/l and 25c/l respectively, the association said.
The AA said the second consecutive drop in fuel prices is good news for consumers, motorists, and the economy.rflow
Lower fuel prices will especially benefit South Africans with vehicles who will save a little on their monthly transport budgets. Consumers generally will also benefit as input costs wont be negatively impacted and prices at the till are, therefore, unlikely to increase, the AA added.
While the Rand has performed stronger against the US Dollar in recent weeks, its impact on the decreases is minimal in the context of the bigger picture, which the CEF data is indicating is being driven almost entirely by movements in international product pricing.
The association said that if the expected decreases are realised, fuel pricing will be pushed back in line with pricing last seen in December 2023 when a litre of ULP95, for instance, cost R23.25 inland.
Although we are expecting fuel to be cheaper in July, we remain concerned about the overall soaring prices which impact all consumers. A sustainable solution to mitigating rising fuel costs is still necessary and until that solution is found, citizens will be at the mercy of fuel price hikes, the AA said.
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, it said.
The Department of Mineral Resources and Energy will officially announce the fuel price adjustments early next week and they will take effect from July 3.
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