Motorists can expect some respite next week, as petrol and diesel prices are expected to fall on Wednesday, 7 June.
While the Department of Energy’s official announcement regarding the June price adjustments is scheduled for early next week, late-month data from the Central Energy Fund indicates a positive trend.
Also read: Early indications show significant fuel price cuts on the cards for June
According to IOL, the unaudited data suggests that petrol prices are likely to fall by around 70 cents per litre, while diesel prices may fall by around 80 cents.
Once again, nothing is set in stone, and the Slate Levy, which compensates fuel companies for fluctuations that occur within the preceding month, could tip the scales in either direction.
However, if the price of petrol falls by 70 cents, motorists will pay around R21.92 for a litre of 95 unleaded at the coast and R22.64 inland, where 93 ULP will cost R22.31.
The expected decreases in diesel and petrol prices are due to low international oil prices, with Brent crude trading at $72.60 at the time of writing, down from a range of $82 to $85 the previous month.
However, if not for the weak rand caused by persistent load shedding and allegations that SA sold weapons to Russia, petrol prices would have fallen by around R1.25 per litre, with diesel prices falling by R1.32.
Nonetheless, the anticipated fuel price cuts of 70 to 80 cents per gallon are significant and will have a positive impact on inflation.
According to IOL, the Automobile Association of South Africa stated that these reductions are beneficial and will relieve pressure on the economy and consumers. It added that this, of course, is only one indicator, and higher interest rates and food prices cannot be ignored, but a drop in fuel prices will benefit many people.
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