AA says fuel prices are expected to drop in July

Motorists can expect a sigh of relief at the end of June, as the Automobile Association (AA) reports that unaudited mid-month fuel data from the Central Energy Fund (CEF) indicates a decrease in prices for all fuels in July, with Unleaded Petrol 93 showing the biggest decrease.

However, the AA cautioned that this may change ahead of the official adjustment by the Department of Mineral Resources and Energy (DMRE) at the end of the month.

Based on the current data, the AA stated that Unleaded Petrol 95 is showing a decrease of around R1.10 per litre, while Unleaded Petrol 93 is indicating a decrease of around R1.15 per litre. Diesel is edging towards a decrease of 55 cents per litre, and illuminating paraffin is showing a decrease of around 45 cents per litre. These decreases, however, will not bring fuel prices back to the lower levels seen at the beginning of the year.

“At this stage of the month, the numbers are more reflective of the way the fuel prices are likely to move when they are adjusted for July. Currently, the trajectory indicates that all fuels will be cheaper in July,” the AA noted.

The AA further pointed out that international product prices remain relatively low, with the price of global oil dropping significantly at the beginning of the month. They also highlighted that the impact of the average Rand/US Dollar exchange rate for the reporting period must still be fully factored in, which may influence fuel pricing either way.

“These decreases, if materialised, will go a long way to further alleviating the fuel price burden – and its associated impact on other prices – felt by millions of South Africans and is certainly welcome,” concluded the Association.

Fuel prices for July are expected to be adjusted on 3 July 2024, the first Wednesday of the new month.

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