Early signs are pointing towards more fuel price relief for South Africans in July, with both petrol and diesel reductions looking likely.
If the current oil price and rand scenarios remain stable until the end of June, motorists could be looking at a petrol price cut of over 70 cents per litre, but the diesel situation is looking less certain at present.
Although the latest snapshot from the Central Energy Fund (CEF), released on July 11, shows an average over-recovery of R1.25 for 95 Unleaded petrol and R1.30 for 93 Unleaded, those numbers are declining as the outlook has worsened in recent days.
The same is true for diesel, whose current over-recovery of 70 cents (50ppm) is trending downwards.
Weaker oil prices earlier in the month, which dipped as low as $78 per barrel (R1,460), led to a large price over-recovery, however Brent Crude Oil has since strengthened to around $81.
A weaker rand has created a deficit of around 20 cents in the fuel price equation, and much will hinge on the outcome of party politics in the coming week as the African National Congress (ANC) attempts to negotiate a government of national unity.
Cumulative increases take their toll
Both grades of petrol dropped by R1.42 per litre at the beginning of June (full story here), bringing the price of 95 Unleaded down to R23.46 at the coast and 93 ULP down to R23.91 in Gauteng. However petrol is still around R1.70 more expensive than it was in January.
Diesel has increased by just 37 cents this year, which should bode well for general inflation, particularly if there are no significant increases going forward.
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