The Automobile Association (AA) has said the price of fuel will drop substantially in July, commenting on unaudited month-end fuel price data released by the Central Energy Fund.
The AA expects the price of petrol to drop by 86 cents a litre, diesel by 68 cents, and illuminating paraffin by 58 cents next month.
“June was the weakest month for oil in the last quarter, with crude briefly slipping below $60 to the barrel at mid-month,” the AA said.
“However, renewed tensions in the Middle East and a downturn in USA oil inventories have put pressure on the commodity, which has ticked up over the past few days.”
Fuel users missed out on an even bigger price drop due to the overall weakening of the rand against the US dollar.
The AA said that going forward, the prime driver of fuel price movements for the third quarter of 2019 will likely be the oil price.
The expected price changes are listed below.
- Petrol – 86 cents decrease per litre
- Diesel – 68 cents decrease per litre
- Paraffin – 58 cents decrease per litre