Fuel decreases on the horizon – AA

Significant decreases in fuel prices across the board are expected in June based on current unaudited mid-month data from the Central Energy Fund (CEF), says the Automobile Association (AA).
According to the data, 95ULP is expected to drop by around 61c/l, and 93ULP by around 63c/l. The wholesale price of diesel is expected to decrease by around 74c/l and the price of illuminating paraffin by almost 69c/l.

The main drivers behind the decreases are a strengthening Rand and lower international oil prices. Movements in international product prices decreased a lot at the beginning of the month resulting in expectant lower fuel prices aided by the downward trajectory of the Rand trading stronger against the dollar since the end of last month.

“The expectant decreases are good news for consumers who have been battered and bruised by these prices in the past couple of months. With these expected decreases, the price of 95ULP will dip slightly to below the R25/l mark and the price of 93ULP will cost R24.52/l. While fuel is still more expensive now than it was at the beginning of the year, these forecast decreases do offer some relief,” says the AA.

The Association says while these figures are promising, it must be remembered that this is only mid-month data and that the picture may change come month-end before the adjustments for June are made.