More fuel price relief is on the cards for South Africans, with a significant petrol price cut and a smaller diesel decrease set to come into effect on Wednesday, July 3.
Late month unaudited data from the Central Energy Fund (CEF) shows an over-recovery of R1.01 for 95 Unleaded petrol and 95 cents for 93 Unleaded, pointing to a reduction in the region of R1 for petrol if there are no unpleasant surprises from the Slate Levy, which compensates fuel companies for oil price fluctuations during the preceding month.
Diesel is looking set for a price reduction in the region of 25 cents for 500ppm and 19 cents for 50ppm.
Should the R1 petrol price cut materialise, South Africans will now pay around R22.91 for a litre of 93 Unleaded in Gauteng and R23.25 for 95 Unleaded, which will fall to R22.46 at the coast.
However keep in mind that these predictions are based on unaudited data. The official fuel price reductions will be announced by the Department of Mineral Resources and Energy (DMRE) at the beginning of July.
This will be the second significant petrol price reduction in a row, with both grades having decreased by R1.24 at the beginning of June. However, petrol prices increased by almost R3 between January and May, thus even with the predicted decreases July prices will still be around 70 cents higher than at the beginning of 2024. Diesel costs increased by 33 cents during 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.
Although the softer fuel prices are good news for cash-strapped motorists and general inflation, the Automobile Association has urged the incoming government administration to review the current fuel price calculation with a view to finding sustainable ways to mitigate rising international oil prices.