A sigh of relief for motorists as fuel prices expected to decrease next month

Fuel price fuel pump petrol price petrol pump Credit Newspress

Fuel price fuel pump petrol price petrol pump Credit Newspress

Published Jun 27, 2024


Unaudited data from the Central Energy Fund (CEF) is indicating fuel-price decreases, particularly significant drops in petrol prices for July, the AA says.

That would bring much-needed relief to embattled consumers, the association said on Thursday.

The adjusted fuel price for July comes into effect next Wednesday, July 3.

The association said all fuel prices were anticipated to fall when the Mineral Resources and Energy Department adjusted prices next week.

The decrease would be the second consecutive one in two months.

According to the latest unaudited data from the CEF, ULP93 and ULP95 are expected to drop by around R1/litre, while diesel and illuminating paraffin prices are likely to drop by around 30cents/litre and 25c/litre respectively.

“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.

“Consumers generally will also benefit as input costs won’t be negatively impacted and prices at the till are, therefore, unlikely to increase,” the AA said.

It said that while the rand had performed stronger against the US dollar in recent weeks, its impact on the decreases was minimal in the context of the bigger picture which the CEF data was indicating was being driven almost entirely by movements in international product pricing.

The association said that if the expected decreases were realised, fuel pricing would be pushed back in line with pricing last seen in December 2023, when a litre of ULP95, for instance, cost R23.25 inland.

The AA said that despite the expected decreases, motorists were advised to keep their vehicles in good mechanical condition and their tyres inflated to the manufacturer’s specifications to ensure optimal fuel usage. Minimising trips where possible, using air conditioners sparingly and not overloading the vehicle were other measures owners could take to optimise fuel consumption.

“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.

“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.

The Star