South Africans are set to experience more relief at the pumps with a significant decrease in fuel prices coming into effect on Wednesday, July 3, 2024.
According to unaudited data from the Central Energy Fund (CEF), petrol prices are expected to drop by around R1 per litre, while diesel prices will see a smaller reduction.
For petrol, the expected reductions are R1.01 for 95 Unleaded and 95 cents for 93 Unleaded. This will bring the new prices to approximately R22.91 per litre for 93 Unleaded in Gauteng, R23.25 for 95 Unleaded in Gauteng, and R22.46 for 95 Unleaded at the coast. Diesel prices are anticipated to decrease by 25 cents for 500ppm and 19 cents for 50ppm.
This marks the second petrol price cut in consecutive months, following a R1.24 decrease in early June. Despite the reductions, petrol prices remain about 70 cents higher than at the start of 2024, while diesel prices increased by 33 cents in the first half of the year.
The primary drivers of the upcoming price decrease include international oil price weakness earlier in the month and a stronger rand performance in late June. These factors helped mitigate the partial recovery of oil prices in the latter half of the month.
While the softer fuel prices provide much-needed relief for motorists and help ease general inflation, the Automobile Association has urged the incoming government administration to review the current fuel price calculation.
They advocate for sustainable measures to address the volatility of international oil prices and provide long-term stability for South African consumers.
