Come July, we’re looking at another drop in fuel prices according to the latest data from the Central Energy Fund (CEF).
Petrol could drop by over R1 per litre, with diesel prices dipping by between 48 cents and 55 cents per litre.
Just this month, drivers were already rejoicing as prices fell sharply.
Petrol dropped by a hefty R1.24 per litre, and diesel went down by R1.09 to R1.19 per litre.
This was largely thanks to the rand getting a boost from the ANC and DA coalition and some solid economic data out of China.
But the tables are turning a bit now.
The rand has taken a slight knock because of some political jitters, and oil prices have dipped to $82 per barrel.
The lower demand from developed markets expecting slower economic activity is driving this drop.
Here’s what we’re looking at for July:
- Petrol 93: down by R1.18 per litre
- Petrol 95: down by R1.12 per litre
- Diesel 0.05% (wholesale): down by 55 cents per litre
- Diesel 0.005% (wholesale): down by 49 cents per litre
Don’t get too comfy, though. These cuts might not stick around. Demand is set to bounce back as the northern hemisphere heads into summer, and folks start hitting the road. Plus, there’s always the wildcard of conflict in the Middle East, which could mess with supply.
The International Energy Agency is also talking about a major surplus this decade as we move away from fossil fuels. But OPEC+ isn’t too happy about that. They’ve been known to cut production to keep prices up.
Case in point: Russia’s recent move to slash production by an additional 400,000 barrels on top of their existing 500,000 cut.
So, enjoy the cheaper fuel while it lasts, and keep an eye on those fuel price boards!