The latest unaudited data from the Central Energy Fund (CEF) brings good news for South African motorists, as a significant reduction in fuel prices is anticipated for July.
Petrol prices for both 93 and 95 unleaded are expected to decrease by approximately R1 per litre. Diesel and illuminating paraffin are also set to see reductions, with prices dropping by about 30 cents per litre and 25 cents per litre, respectively.
The Automobile Association (AA) highlighted the positive impact these changes would have on consumers, noting that lower fuel costs will alleviate financial pressures, especially for vehicle owners. These reductions are primarily driven by international product pricing rather than currency fluctuations.
“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,”
the AA stated.
While the price cuts are welcomed, concerns about sustained high fuel costs remain. The AA emphasized the need for a long-term solution to mitigate future price hikes and urged the incoming administration to conduct a transparent review of the fuel pricing structure.
“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.
If the anticipated R1 petrol price cut materializes, South Africans will pay around R22.91 per litre for 93 unleaded inland and R23.25 per litre for 95 unleaded. On the coast, 95 unleaded will cost R22.46 per litre.
This would mark the second consecutive month of significant petrol price reductions, following a decrease of R1.24 per litre in June. Despite these decreases, petrol prices had risen by nearly R3 per litre between January and May, leaving July prices approximately 70 cents higher than the start of 2024. Diesel prices increased by 33 cents per litre during the first half of the year.
July’s decreases in petrol and diesel prices are largely attributed to international oil price weakness earlier in the month. The stronger performance of the rand later in June also helped to mitigate oil’s recovery in the latter half of the month.
