This will be the first time this year that fuel prices have decreased for two consecutive months.
The Automobile Association (AA) says that if the expected decreases become a reality, fuel prices will be as low as they were in December 2023.
The adjusted fuel price for July will take effect at noon on Wednesday. The price of 95-octane petrol is currently R24,25 a litre in Gauteng and R23,46 at the coast. The wholesale price of diesel is R21,15 a litre in Gauteng and R20,39 at the coast.
The AA says the price cuts are good news for consumers, motorists and the economy. Lower transport costs for companies will hopefully also favourably affect retail prices.
Although the rand-dollar exchange rate is one factor that influences the fuel price, its impact was minimal this time, even though the local currency has performed better against the dollar in recent weeks.
“Information from the Central Energy Fund shows that the fuel price has largely been driven by the movement in the international product price,” says the AA.
The fuel price relief in June and the expected decrease this week will have a favourable effect on inflation, which remained unchanged at 5,2% in May.
