While it is still early May and much can change in the coming weeks, significant petrol and diesel price cuts could be on the way in June if oil prices remain stable and no major currency shocks occur.
The Central Energy Fund’s most recent unaudited data breakdown shows a significant overrecovery for both fuel types.
Also read: Petrol prices set to increase while diesel drops again
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According to IOL, the monthly average is currently indicating a reduction of R1.16 for 95 unleaded petrol and R1.12 for 93 unleaded, and the most recent daily figures are even further in the green, implying that the aforementioned figures could rise.
On the diesel front, current data indicates a reduction of around R1.50 per litre for both grades.
Diesel prices fell between 47 cents (50ppm) and 73 cents (500ppm) this month, while petrol prices rose by 37 cents.
95 unleaded currently costs R22.62 on the coast and R23.34 inland, while 93 unleaded costs R23.01.
Brent crude traded at $77.44 per barrel on Tuesday, down from around $85 a month ago. The US Energy Administration, on the other hand, warns that a seasonal increase in oil consumption and a drop in OPEC crude oil output may put upward pressure on prices in the coming month.
Petrol prices have risen significantly in the last two years, with 95 unleaded costing R18.89 in January 2022 and R14.16 in January 2021.
The wholesale price of 500ppm diesel has risen by approximately R5 in the last two years, and the current cycle of decreases may help slow overall inflation.
It may, however, take some time for this to be reflected in consumer prices.
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