Even bigger fuel price cut likely in July

Published Jun 19, 2017

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Johannesburg - After enjoying a fuel price reduction of 25 cents a litre in early June, South African motorists could be in for an even more substantial price cut at the beginning of July.

Unaudited mid-month data, released by the Department of Energy, is pointing towards a price reduction of around 60 cents for petrol and 59c in the case of diesel.

This would bring the cost of a litre of 95-octane Unleaded down to R12.46 at the coast and R12.95 in Gauteng (with 93 Unleaded at R12.73).

The 59 cent calculation is based on international fuel prices between June 2 and June 14, and July’s final fuel price will also be determined by oil price price and rand movements between now and June 29.

Both the local currency and oil prices have been working in our favour so far this month.

The rand has strengthened from R13.06 at the beginning of June, to a peak of R12.70 on June 5, and settling in the R12.75-80 range by mid-month.

Oil prices have trended lower this month on rising US supplies.

IOL Motoring

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