Fuel: Big petrol, diesel and paraffin price cuts for SA in July

South Africans are likely to pay at least R1 less for petrol from July, while diesel and illuminating paraffin prices are likely to drop by around 30cents/l and 25c/l respectively, according to unaudited data from the Central Energy Fund (CEF).

The Automobile Association (AA) said the fuel price drop will bring much-needed relief to “embattled consumers” when the Department of Mineral Resources and Energy (DMRE) officially adjusts prices for July next week.

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The adjusted fuel price for July comes into effect next Wednesday, 3 July 2024.

A decrease in petrol prices in July will mark the first time this year that prices have fallen in two consecutive months.

Petrol price decrease

AA spokesperson Layton Beard said a second consecutive drop in petrol prices is good news for consumers, motorists, and the economy.

“Lower fuel prices will especially benefit South Africans with vehicles who will save a little on their monthly transport budgets. Consumers generally will also benefit as input costs won’t be negatively impacted and prices at the till are, therefore, unlikely to increase.”  

The AA said while the rand performed stronger against the US Dollar in recent weeks, its impact on the decreases is minimal in the context of the bigger picture which the CEF data is indicating is being driven almost entirely by movements in international product pricing.

Overall soaring prices

The AA added that if the expected decreases are realised, fuel pricing will be pushed back in line with pricing last seen in December 2023 when a litre of ULP95, for instance, was R23.25 inland.

However, the AA said while petrol prices will be dropping in July, it is concerned about the overall soaring prices which impact all consumers

“A sustainable solution to mitigating rising fuel costs is still necessary and until that solution is found, citizens will be at the mercy of fuel price hikes. As the country awaits finalisation of the new cabinet, we implore the new administration to prioritise finding sustainable solutions to rising fuel costs by conducting a long overdue and transparent review of the fuel pricing structure.”

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Despite the expected decreases, the AA advised motorists to keep their vehicles in good mechanical condition, and their tyres inflated to the manufacturer’s specifications, to ensure optimal fuel usage.