AA Notes Significant Decreases in Fuel Prices Expected in June, Drivers Are Happy

• Fuel prices are expected to significantly decrease in June, with drops of around 61 cents per litre for 95ULP and 74 cents per litre for diesel
• While some drivers like Themba Sibisi are optimistic, others like Sabelo Mbanjwa remain sceptical about the long-term impact
• The AA notes these figures are preliminary and may change by month-end

Consumers can look forward to some relief at the pumps next month, as significant decreases in fuel prices are expected across the board in June.

According to the Automobile Association (AA), this prediction is based on current unaudited mid-month data from the Central Energy Fund (CEF).

Significant drops in prices

The data shows that 95-octane unleaded petrol (95ULP) is predicted to drop by approximately 61 cents per litre. The cost of 93-octane unleaded gasoline (93ULP) will likely decrease by around 63 cents per litre.

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Additionally, the wholesale price of diesel is projected to decline by about 74 cents per litre and the cost of illuminating paraffin by nearly 69 cents per litre.

The primary factors driving these decreases are a strengthening Rand and lower international oil prices.

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Trends in international product prices have fallen significantly since the start of the month, contributing to the expected lower fuel prices following another increase in April.

A stronger rand and lower international oil prices

AA's Layton Beard mentioned that the rand's recent strengthening bolsters this downward trend. The currency has been stronger against the dollar since late last month.

"The anticipated price drops are welcome news for consumers who have been struggling with high fuel costs over the past few months. With these predicted reductions, 95ULP will fall just below R25 per litre, and 93ULP will be priced at R24.52 per litre. Although fuel prices are still higher than at the beginning of the year, these expected decreases provide some relief."

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Drivers left with mixed emotions

Despite the anticipated reductions, some drivers have mixed emotions about the news.

Sabelo Mbanjwa, a regular driver, expressed scepticism about the impact of the price drop.

"It won't make much of a difference because the trend has been increasing so much that it doesn't resonate with the initial prices even when it drops. If it decreases once, it will increase again in three months."

On the other hand, Themba Sibisi, another driver, welcomed the news with optimism. He highlighted the immediate relief that the lower prices would provide.

"The significant decrease makes me happy. Drivers can breathe a little."

Figures based on mid-month data

The AA also cautioned that while these figures are promising, they are based on mid-month data, and the situation could change by the end of the month when the final adjustments for June are made.

For consumers, the potential decrease in fuel prices is a welcome development amid fluctuating costs.

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The expected reductions could provide much-needed economic relief, particularly for those who rely heavily on fuel for daily transportation and business operations.

As always, the AA will monitor the situation closely and provide updates as more definitive data becomes available.

SA is frustrated by another fuel price increase

Briefly News reported that the fuel price increased by almost 70 cents in April. The Department of Energy announced the price increases. Petrol will increase by 65 cents for 93 unleaded and 67 cents.

The price of 93 unleaded petrol will increase by 65 cents, and the price of 95 unleaded will increase by 67 cents. Diesel is expected to increase by R1,07c per litre.

The increase is attributed to rising international prices, a higher carbon fuel levy and an increase in the state levy.

Source: Briefly News