South Africans can look forward to a drop in fuel prices in June, driven by a stronger rand/US dollar exchange rate and lower international product prices.
According to the Automobile Association (AA), unaudited data from the Central Energy Fund (CEF) points to significant decreases in fuel prices for June, offering relief to consumers who have faced rising costs since February.
According to the Central Energy Fund (CEF)’s predictions, motorists can expect the following changes to petrol, diesel and paraffin prices for June:
Petrol 93 to decrease by R1.06 per litre,
Petrol 95 to decrease by R1.06 per litre,
Diesel 0.05 percent to decrease by R1 per litre,
Diesel 0.005 percent to decrease by 90 cents per litre,
Illuminating Paraffin (wholesale) to decrease by 80 cents per litre.
The AA said that in mid-May, it predicted modest decreases of about 61c/l for 95ULP and 63c/l for 93ULP. However, the combination of lower international product prices and a stronger rand has improved our forecast.
In January, a litre of 95ULP in Gauteng was priced at R22.49, which was R3 less than the cost in May. Similarly, at the coast, the same fuel cost R21.77/l in January, which was R2.93 cheaper than the current R24.70.
The AA said that while the expected decreases will offer some relief, fuel costs remain higher than a few months ago, highlighting the ongoing financial strain many South Africans are experiencing.
The AA stressed that these figures might change before the official adjustment by the Department of Mineral Resources and Energy on Wednesday, but substantial decreases are still anticipated.
“High fuel costs and interest rates are still strangling many South Africans — especially those with debt — and any positive development will be well received. However, it remains necessary that the fuel pricing mechanism is reviewed to determine if there are any factors that can be permanently revised to mitigate against rising fuel costs in future," it said.
"This is a call we have been making on government since 2018 and the longer it takes to do so, the longer South Africans will bear the brunt of fluctuations in the factors that influence the fuel price.
“Consumers are embattled, and it is incumbent upon government to find ways to deal with this situation. As we have also said many times before, civil society organisations such as ours stand ready to work with government on finding solutions that benefit all citizens and we believe it is long overdue that government accepts this invitation for collaboration,” the AA said.
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