South Africa reported its biggest quarterly decline in over a decade for Q1 2019 while our leaders sat bickering over ANC policies surrounding the South African Reserve Bank. This general air of political uncertainty, combined with tumultuous international factors, the implementation of new taxes and stronger levies, has seen the rand weaken, and the price of fuel soar.
Thankfully, motorists could finally be in for some relief at the pumps in July. The AA, commenting on the latest unaudited mid-month data from the Central Energy Fund, has predicted a massive decrease in the fuel price.
The latest data from the CEF shows a large over-recovery for both grades of petrol, diesel and illuminating paraffin, and if current conditions persist over the next few weeks, we could see petrol drop by as much as 90c per litre, and diesel by 70c per litre.
This is what we could be paying per litre in July, based on the latest available data.
A significant drop in the price of international petroleum products – down by 14% in the last month, driven by decreasing oil prices – is the biggest contributor to the price forecast. Earlier this week, however, news broke of apparent attacks on oil tankers in the Gulf of Oman, which has already led to a 3% increase in the price of crude oil, per barrel.
The predicted prices, based on the latest data, could possibly be impacted by these factors come July. Fluctuations on trade talks between the US and China will also play a role in the price of oil.
So, a lot can change in the two weeks remaining, but the AA remains buoyant.