July petrol and diesel price outlook: it’s a mixed bag so far

Fuel prices won’t change substantially in July.

Johannesburg – While June brought substantial decreases for both petrol and diesel, motorists can expect far smaller fuel price adjustments next month.

The latest unaudited data released by the Central Energy Fund points to a small decrease for petrol, but diesel prices are looking set to rise.

As it stands, decreases to the tune of around 15 cents for 93 Unleaded petrol and 7 cents for 95 Unleaded are looking likely for July.

That said, a lot can happen in the next ten days and that minor decrease could easily become a slight increase, but it’s unlikely that petrol prices will see a substantial movement either way.

On the diesel front, the current month average is pointing to an increase of around 15 cents for 500ppm, but the latest daily data shows an even larger under-recovery which could see that figure shift closer to 30 cents or beyond by month-end if current trends persist.

International oil prices have inched slightly higher this month, with Brent Crude oil currently trading at just over $76, however the rand has appreciated somewhat from its average of R18.98 to the US dollar last month and at the time of writing was listed at R18.15.

For the record, a litre of 95 Unleaded petrol currently retails at R21.91 at the coast and R22.63 in the inland regions, where the cheaper 93 ULP costs R22.30. At the beginning of this year a litre of 95 cost R20.75 at the coast.

The wholesale price of 50ppm diesel is currently listed at R18.99 at the coast, down from R20.78 in January. This is indeed good news for general inflation, given how many industries rely on diesel for transportation, and the predicted increase for July is unlikely to put too much of a damper on that situation.

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