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Home Read a ride Cars/SUVs

Anticipated fuel price drop brings hope for South African drivers

David Ijaseun by David Ijaseun
June 18, 2024
in Cars/SUVs, News
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Anticipated fuel price drop brings hope for South African drivers
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South African drivers are set for a relief as fuel prices are expected to drop in July, according to mid-month data from the Central Energy Fund.

Petrol prices could fall by over R1.09 per litre, bringing the cost of 93 unleaded back below R23 per litre at inland rates. Diesel prices are also anticipated to decrease by at least 41c per litre, potentially lowering both grades to around R20 per litre.

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The anticipated cuts are attributed to a decline in average international oil prices during the first half of June. Brent Crude oil, which traded at $81.86 per barrel on May 31, dropped to $77.52 per barrel by June 4, before recovering slightly to $84.25 per barrel by June 17.

“However, the benefits of lower oil prices were somewhat offset by a weaker local currency,” according to a report by TopAuto. “Between May 31 and June 17, the rand depreciated from approximately R18.47 to R18.65 against the US dollar, leading to an under-recovery in domestic fuel prices of 12 to 13 cents per litre, depending on the fuel type.”

Read more on Volkswagen, Transnet collaborate to revive rail transport in South Africa

Tags: fuel pricesSouth Africa

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