The Automobile Association (AA) says current unaudited data from the Central Energy Fund (CEF) is indicating a noteworthy drop to fuel prices across the board.
According to the CEF’s figures, ULP95 petrol is expected to be lower by around R2.35/l while ULP93 is set for a drop of around R2.18/l.
Diesel is expected to drop by between 77 and 87 cents/l while illuminating paraffin will drop by around 82c/l.
“These decreases are certainly welcome and will provide some relief to motorists. Considering the expected decrease to ULP95, for instance, the price for this fuel will drop from its current R25.42/l to R23.07/l.
This is cheaper than the June price of R24.17/l but still significantly higher than the R21.84/l May pricing. It is also way off the January pricing of R19.61/l. Nevertheless, any decrease in fuel prices is good news,” the AA said.
The downward movement in international oil prices is the main driver behind the expected decreases contributing 94% to the projected reductions.
The average Rand/US dollar exchange is playing a smaller role but is still contributing to the expected decreases.
“Although we are expecting fuel to be cheaper in September, we remain concerned about the overall high prices which impact on all consumers. The price hikes in June and July will continue to impact the economy, and on the financial situation of all South Africans,” the association says.
The AA has called on the government to urgently initiate a transparent review of the fuel price to seek answers.
