According to unaudited mid-month data from the Central Energy Fund, the Automobile Association (AA) anticipates that motorists’ pockets can prepare for a sigh of relief as substantial drops in fuel prices across the spectrum are predicted for June.
The projected figures came after four consecutive months of crippling petrol price increases.
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Expected drops include 61c/l for 95ULP and 63c/l for 93ULP, with diesel and illuminating paraffin also expected to decrease.
The main factors behind these decreases are a stronger rand and international oil prices that decreased at the start of May. The rand rallied last week to its strongest levels in 2024 due to an improvement in risk sentiment as bets grow that the US Federal Reserve may cut interest rates in September, reported The Citizen.
‘The expectant decreases are good news for consumers who have been battered and bruised by these prices in the past few months,’ said the AA.
‘With these expected decreases, the price of 95ULP will dip slightly to below the R25 per litre mark and the price of 93ULP will cost R24.52 per litre. While fuel is still more expensive than it was at the beginning of the year, these forecast decreases offer some relief.’
The Association added that while these figures are promising, it ‘must be remembered that this is only mid-month data and that the picture may change come month-end before the adjustments for June are made’.
As always, the final fuel price announcement will be made by the Department of Mineral Resources and Energy (DMRE) at the end of the month, with adjustments coming into effect on the first Wednesday of the new month.
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Picture: Engin Akyurt / Unsplash
