South Africans can finally look forward to some fuel price relief from next week, with petrol and diesel prices set to decrease on Wednesday, June 5.
Late-month unaudited data from the Central Energy Fund (CEF) shows that petrol prices are likely to come down by around R1.06 per litre, while diesel is looking set to decrease by between 90 cents, for 50ppm, and R1 for the dirtier 500ppm.
These strong over-recoveries could see the price of 95 Unleaded petrol falling to around R23.64 at the coast and R24.43 in Gauteng, where 93 Unleaded will decrease to around R24.09.
These predictions come with a caveat however as factors like the Slate Levy, which compensates fuel companies for international oil price fluctuations during the month, could still have a bearing on the final fuel prices, which are due to be announced by the Department of Mineral Resources and Energy early next month.
Those filling their vehicles with petrol have been dealt a particularly hard sting this year, with the price of 95 Unleaded having risen by R2.93 since January this year. Diesel has delivered a softer blow thus far, with 50ppm having increased by R1.46 and 500ppm by R1.45.
June’s predicted price decreases come mainly as a result of lower international oil prices, which have contributed about 73 cents to the month’s petrol price over-recovery, while a stronger rand is pushing the equation into the green by a further 32 cents.
The outcome of the election does carry a risk going forward however, as a coalition situation deemed unfavourable by the international business community could see the local currency depreciating, which would have a knock-on effect for fuel prices from July onwards.
Stay tuned to IOL for the official petrol and diesel price announcements in early June.