The Automobile Association (AA) predicts significant fuel price decreases for June in South Africa, aided by a stronger rand/US dollar exchange rate in May and lower international product prices. The association predicts a decrease of about 61c/l for 95ULP and 63c/l for 93ULP, with petrol set to decrease by about R1.06/l for 95ULP and 93ULP, diesel by about R1/l, and illuminating paraffin by about 80c/l. However, the association notes that fuel costs remain higher than a few months ago, highlighting the financial pressure many South Africans still face. The association expects substantial decreases across the board this month.
High fuel costs and interest rates continue to strain many South Africans, particularly those with debt. The association calls for a review of the fuel pricing mechanism to determine if any factors can be permanently revised to mitigate against rising fuel costs in the future. The longer it takes to do so, the longer South Africans will bear the brunt of fluctuations in the factors influencing fuel prices.
The AA calls on the government to find ways to deal with the situation and invites civil society organizations to work with the government on solutions that benefit all citizens.
