Positive Outlook for Fuel Prices in July, As Predictions Continue on a Downward Trajectory
- The Automobile Association (AA) reports potential fuel price decreases for July, with ULP93 showing the biggest drop
- These anticipated reductions are driven by lower global oil prices, but final adjustments by the Energy Department will be confirmed on 3 July
- South African drivers express cautious optimism about the relief this may bring
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The latest unaudited mid-month fuel data from the Central Energy Fund (CEF) indicates a positive trend for fuel prices in July.
Fuel prices for July are expected to be adjusted on 3 July, the first Wednesday of the new month.
According to the Automobile Association (AA), the data suggests a decrease in prices for all types of fuel, with Unleaded Petrol 93 (ULP93) showing the most significant potential drop.
However, the AA cautions that these numbers could change before the Department of Mineral Resources and Energy (DMRE) makes its official adjustment at the end of the month.
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Petrol continues to decrease
Current figures show that Unleaded Petrol 95 (ULP95) could decrease by approximately R1.10 per litre, while ULP93 might drop by around R1.15 per litre.
Diesel is expected to decrease by about 55 cents per litre, and illuminating paraffin could see a 45 cents per litre reduction.
Despite these potential decreases, fuel prices are not expected to fall to the lower levels seen at the beginning of the year.
“At this stage of the month, the numbers are more reflective of how the fuel prices are likely to move when adjusted for July. The trajectory indicates that all fuels will be cheaper in July."
The international market has seen a significant drop in global oil prices, contributing to the lower fuel prices.
However, the average Rand/US Dollar exchange rate for the reporting period still needs to be fully considered, which could influence the final pricing.
“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."
Drivers react to potential decrease
South African drivers have expressed relief and cautious optimism about the potential decrease in fuel prices after having the last increase in April.
Mpho Nkosi, a Johannesburg-based delivery driver, is excited to see the prices going down.
“I’m really hoping these decreases come through. Every cent counts when you’re driving all day. This could make a real difference for me and my family.”
Sibusiso Dlamini, a taxi driver in Ga-Rankuwa, shares similar sentiments.
“Fuel prices going down is good news for everyone, not just drivers. Lower fuel costs mean I can keep my fares stable for my passengers, who are also struggling with high living costs.”
Not everyone is optimistic
However, according to Fatima Patel, who commutes daily between Pretoria and Johannesburg, some drivers remain skeptical about whether the decreases will be as significant as predicted.
“We’ve seen these announcements before, and sometimes the actual drop isn’t as big as we hope. I’ll believe it when I see it at the pump.”
AA noted a significant decreases in fuel prices expected in June
Breifly News last month reported that 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 remain sceptical about the long-term impact.
The AA notes these figures are preliminary and may change by month-end.
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Source: Briefly News
