Reprieve For South African Motorists As Fuel Prices Hits 6-Month Low
Its finally a sigh of relief for South African motorists after the department of energy announced price drop in fuel prices set to take effect as from July 3rd.
“On July 3, the price of 93 ULP petrol will drop by 96 cents a litre, while 95 ULP will cost 95 cents less a litre.”
“Diesel (0.05 percent sulphur) will decrease by 74.78 cents a litre and Diesel (0.005 percent sulphur) will cost 75.78 cents a litre less. The price of paraffin will be reduced by 57 cents a litre.”
New oil prices are announced on a monthly basis in South Africa just like is the case in many countries and they are normally influenced by many factors including slight changes in the global crude oil market.
The Automobile Association (AA), June was the weakest month for oil. The price of crude oil slipped briefly below USD 60.
The AA said, “Although the currency re-strengthened against the dollar towards month-end, the exchange rate average for the month is negative by about 11 cents, meaning fuel users missed out on an even bigger drop.”
SA National Consumer Union deputy Chairperson Clif Johnston said that if the cost reductions are to be sustained all consumers will benefit. “Consumers buying petrol, diesel, paraffin and gas will benefit immediately – for example refueling a typical car should work out some USD 2.13-USD 2.84 cheaper after the reduction.”
He however noted that not everyone will benefit from the price slash as bus fares may remain unchanged.
“Service providers tend to cash in on cost reductions rather than to pass the savings on to consumers. In the longer run a lower fuel price should mean that public transport prices, and indeed prices of general goods and services, should not increase as much as if the current fuel prices were to be sustained,” said Johnston.
Featured Image Courtesy: Yale E 360