As South Africa is preparing for the lockdown to relax to Level 3, motorists who are just getting back on the road may not receive the warmest welcome. According to unaudited month-end fuel price data released by the Central Energy Fund (CEF), the price of petrol may increase for June.
An estimated eight-million South Africans are expected to return to work on Monday, June 1.
Using the data provided by the CEF, the Automobile Association (AA) predicts that petrol will increase by R1.18, and diesel is expected to increase by 22 cents per litre. The price tag on illuminating paraffin is expected to increase by 41 cents.
“The global lockdowns under COVID-19 saw fuel demand plummet. The resulting oversupply left storage bunkers full, with the extraordinary outcome that oil prices in the USA briefly dipped below zero,” the AA said. “This is not unexpected, and South Africans should remember that the fuel price is currently around R4 per litre lower than it was before the COVID-19 crisis hit. Fortunately, the rand has strengthened during May, which has helped insulate the country from some of the rise.”
The AA also noted that there is diesel rationing in South Africa at the moment, but the supply of the fuel is expected to normalise by the end of May.
“We advise motorists to be pragmatic and anticipate fuel prices slowly returning to their previous levels over the medium to long term. It would be prudent to budget accordingly,” the AA said.
The table below outlines how these changes could reflect in June, if current conditions persist:
|Type of fuel||May price||Estimated price for June|