Fuel price drop expected

Following steady increases since February, fuel prices are expected to decrease significantly this month.

This as the Automobile Association (AA) again calls for a review of the fuel price model.

According to the unaudited data from the Central Energy Fund (CEF), petrol looks set for a R1.06 cents per litre decrease for both 95ULP and 93 unleaded petrol, while diesel is likely to drop by around R1 per litre, and illuminating paraffin by around 80 cents per litre.

“While the decreases will bring relief, the cost of fuel is still higher now than it was just a few short months ago, and again points to the financial pressure many South Africans still experience,” the AA said on Monday.

The formal adjustment by the Department of Mineral Resources and Energy (DMRE) is expected on Wednesday.

“High fuel costs and interest rates are still strangling many South Africans – especially those with debt – and any positive development will be well received.

“However, it remains necessary that the fuel pricing mechanism is reviewed to determine if there are any factors that can be permanently revised to mitigate against rising fuel costs in future.

“This is a call we have been making to government since 2018 and the longer it takes to do so, the longer South Africans will bear the brunt of any fluctuations to the factors that influence the fuel price,” the AA said.

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