Mid-month fuel price data released by the Central Energy Fund predicts a drop in petrol prices for July 2021, with diesel prices expected to rise.
This is according to a report by BusinessTech.
The expected fuel price adjustments for South Africa for July are as follows:
- Petrol 95 – decrease of 6 cents per litre
- Petrol 93 – decrease of 3 cents per litre
- Diesel 0.05% – increase of 19 cents per litre
- Diesel 0.005% – increase of 19 cents per litre
- Illuminating Paraffin – increase of 14 cents per litre
The report noted that fuel prices are affected by two main components – the rand and US dollar exchange rate, as well as changes to international petroleum costs.
At mid-June, the strong ZAR/USD exchange rate is contributing to a recovery in prices – while a significant gain in international prices for both diesel and illuminating paraffin may lead to a price increase for these fuel types.
“The rand has enjoyed an extended strong run against the US dollar over the last few weeks, hitting its strongest point in two years at R13.42 at the start of June,” stated the report.
Oil prices, on the other hand, have emerged from their “wait and see” period, surging to a new high of above $71 per barrel.
“According to the Oil Producing Economies, demand for oil is expected to increase by six million barrels a day, from lows seen in 2020. This is due to demand from the US and China, in particular,” stated the report.
Oil prices are expected to reach pre-Covid levels again towards the end of 2022, with a continuous increase in international oil prices likely to cause additional fuel price increases.
“According to the CEF’s data, by mid-June petroleum prices were climbing steadily higher,” concludes the report.
Below are the expected inland fuel prices for July 2021, based on the predicted price changes:
- Petrol 95 – R17.07
- Petrol 93 – R16.88
- Diesel 0.05% (wholesale) – R14.85
- Diesel 0.005% (wholesale) – R14.90
- Illuminating Paraffin – R8.91