Fuel prices to drop again in July

Fuel prices are set to decrease on July 3.

Automobile Association (AA) spokesperson Eleanor Mavimbela said the latest data from the Central Energy Fund (CEF) suggests fuel prices will decrease in July with a notable drop in petrol prices.

According to Mavimbela, the CEF said all fuel prices were predicted to drop when the Department of Mineral Resources and Energy (DMRE) officially adjusts prices for July next week.

“A decrease in fuel prices in July will mark the first time this year that prices have fallen in two consecutive months,” said Mavimbela.

She added that data from CEF shows that unleaded petroleum (ULP 93 and ULP 95) will drop by around R1 per litre, while diesel and illuminating paraffin prices are likely to drop by around 30 cents per litre and 25 cents per litre respectively.

“A second consecutive drop in fuel prices is good news for consumers, motorists, and the economy,” she said.

“Lower fuel prices will especially benefit South Africans with vehicles who will save a little on their monthly transport budgets,” she added.

She noted that customers will also benefit as input costs won’t be negatively impacted and prices at the till are, therefore, unlikely to increase.

Mavimbela said although the rand has strengthened against the US dollar in recent weeks, its impact on the fuel price decreases is minimal.

She added that according to CEF data, the main reason for these decreases is international product pricing.

“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 ULP 95, for instance, cost R23.25 inland,” she said.

Despite the expected decreases, motorists are urged to keep their vehicles in good mechanical condition.

They should make sure their vehicle’s tyres are inflated to the manufacturer’s specifications to ensure optimal fuel usage.

Mavimbela added that minimising trips where possible, using air conditioners sparingly, and not overloading the vehicle are other measures owners can take to optimise fuel consumption.

“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,” she said.

“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,” she concluded.

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