Motorists can expect fuel prices to fall sharply in July amid rand resilience and a declining oil price.<\/p>\n
This is according to the Automobile Association (AA), commenting on unaudited mid-month data released by the Central Energy Fund (CEF).<\/p>\n
The current picture suggests that road users could be looking at a petrol price decline of between 60 and 64 cents a litre at month end, with diesel showing a 60 cents reduction and illuminating paraffin 57 cents, the AA said.<\/p>\n
“The rand remained mostly stable against the US dollar in the first half of June, with strength in the currency contributing three cents a litre to the drop,” the association said.<\/p>\n
“The big move was from oil, which shrugged off OPEC’s production quotas to drop by around eight percent since the start of the month.”<\/p>\n
The association said the fuel price will come under pressure if the three major ratings agencies downgrade rand-denominated debt to junk status in future reviews of South Africa’s sovereign credit ratings.<\/p>\n
“That could trigger substantial capital outflow, almost certainly leading to Rand weakness which will be heavily negative for the fuel price,” it said.<\/p>\n
“Barring unexpected political or economic shocks in the lead-up to the next ratings reviews,\u00a0we expect fuel price movements to mainly depend on international petroleum prices,” the AA said.<\/p>\n
Here\u2019s what you can expect to pay in July:<\/p>\n
| Fuel<\/th>\n | June official<\/th>\n | July expected<\/th>\n<\/tr>\n |
|---|---|---|
| 93 Petrol<\/td>\n | R13.32<\/td>\n | R12.72 to R12.68<\/td>\n<\/tr>\n |
| 95 Petrol<\/td>\n | R13.54<\/td>\n | R12.94<\/td>\n<\/tr>\n |
| 0.05% Diesel (wholesale)<\/td>\n | R11.58<\/td>\n | R10.98<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n \n |