Mid-month data from the Central Energy Fund indicates that fuel prices are set for another big drop in South Africa come July.
Petrol prices are looking to come down by over R1.09 per litre which would see the cost of 93 unleaded sitting below the R23/litre mark at inland rates once again.
Meanwhile, diesel prices are expected to witness a reduction of at least 41c per litre, which will put both grades of this fuel type in the region of R20/litre.
Much-needed relief for South African motorists
July’s anticipated fuel price cuts are a result of a drop in average international oil costs during the first two weeks of June.
A barrel of Brent Crude oil traded for $81.86 on 31 May, falling down to $77.52/barrel by 4 June, and recovering to $84.25/barrel by 17 June.
With the average price of the black gold sitting lower than it did during the previous period, it led to a drop in international prices for refined petroleum products which in turn slashed between R1.22-1.28/litre from local petrol prices and 54-59c/litre from diesel prices.
These gains were hampered by an underperforming local currency, however.
Between 31 May and 17 June, the average rand/US dollar exchange rate depreciated from approximately R18.47/dollar to R18.65/dollar, which led to an under-recovery in domestic fuel prices of between 12-13c/litre, depending on the type.
Accounting for these inputs, fuel prices in South Africa in July are expected to be adjusted as follows:
- Petrol 93 – Decrease of R1.15 per litre
- Petrol 95 – Decrease of R1.09 per litre
- Diesel 0.05% – Decrease of 46c per litre
- Diesel 0.005% – Decrease of 41c per litre
Take note that these estimations are not the official changes that will be made by the Department of Energy next month, which may be higher or lower as they also take into account any potential changes in the Slate Levy, taxes, transport costs, or wholesale and retail margins.
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