Motorists can look forward to more relief at the petrol pumps as fuel prices look set to fall in July.
According to the latest update from the Central Energy Fund, a petrol price decrease in the region of R1 is looking likely for next month.
However, the picture is not crystal clear as on Wednesday, the average over-recovery of R1.07 for 95 Unleaded, had been on a slight downward trajectory as the outlook has deteriorated.
The diesel equation is deteriorating at a more rapid rate and while the current picture points to reductions in the region of 40 cents, that could easily fall below the 20-cent mark if current trends prevail.
Should the R1 petrol-price cut materialise, 95 Unleaded petrol will fall to around R22.46 at the coast and R23.25 in Gauteng, where 93 ULP will adjust to around R22.91.
The Automobile Association says: “These decreases, if materialised, will go a long way to further alleviating the fuel-price burden and its associated impact on other prices felt by millions of South Africans and is certainly welcome.”
The current over-recovery is largely driven by lower international oil prices earlier in the month, with Brent Crude dipping below the $80 (R1 440) mark.
While prices have since risen to around $85, the rand recently hit an 11-month high, dip- ping below the $18 mark at the time of writing on Wednesday on optimism surrounding South Africa’s Government of National Unity.