June is set to bring a welcome respite for South African motorists with significant fuel price reductions on the horizon, according to unaudited mid-month data from the Central Energy Fund (CEF), as reported by the Automobile Association (AA). The AA's data suggests that the price of 95 unleaded petrol will fall by approximately 61 cents per litre, while 93 unleaded petrol is expected to drop by around 63 cents per litre. Diesel prices are anticipated to decrease by about 74 cents per litre, and illuminating paraffin is likely to reduce by nearly 69 cents per litre.
But why?
These expected decreases are largely attributed to a stronger Rand and declining international oil prices. A substantial reduction in international product prices early in the month, coupled with a Rand that has been gaining strength against the dollar since late last month, has set the stage for these potential lower fuel prices.
“The anticipated drops in fuel prices are a relief for consumers who have been hard-hit by high prices in recent months. If these reductions materialise, the price of 95 unleaded will dip just below the R25 per litre mark, and 93ULP will be priced at R24.52 per litre. Although fuel remains pricier than at the start of the year, these projected decreases offer some much-needed relief,” says the AA.
