Positive outlook for most fuel prices for July

Unaudited mid-month fuel data from the Central Energy Fund (CEF) is indicating a decrease to prices for all fuels in July, with ULP93 currently showing the biggest decrease. But, says the Automobile Association (AA), this may change ahead of the official adjustment by the Department of Mineral Resources and Energy (DMRE) at the end of the month.

Based on the current data, ULP95 is showing a decrease of around R1.10c/litre, while ULP93 is indicating a decrease of around R1.15c/l. Diesel is again edging towards a decrease of 55c/l and illuminating paraffin is showing a decrease of around 45c/l. These decreases, however, will not move the prices of fuel to lower prices seen at the beginning of the year.

“At this stage of the month, the numbers are more reflective of the way the fuel prices are likely to move when they are adjusted for July. Currently, the trajectory indicates that all fuels will be cheaper in July,” the AA notes.

International product prices remain relatively low, with the price of global oil dropping significantly at the beginning of the month. The impact of the average Rand/US Dollar exchange rate for the reporting period must also still be fully factored in which may move fuel pricing either way.

“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,” concludes the Association.

Fuel prices for July are expected to be adjusted on 3 July, the first Wednesday of the new month.