Petrol, diesel prices look set for large cuts - for now
Despite the rand crashing to record low levels last week, fuel prices currently still look set for a cut at the start of June.
Based on the latest oil and rand prices, the latest data from the Central Energy Fund shows that diesel prices could be lowered by R1.06 to R1.13 a litre, depending on the grade. Petrol (both 95 and 93 unleaded) could be cut by around R1 a litre.
Illuminating paraffin currently looks set for a 62c a litre cut.
However, there is still some time to go before the final prices are set. Fuel prices will only be adjusted on 7 June.
"Nonetheless, we remain confident that significant decreases will be seen to fuel prices for June," the Automobile Association (AA) said in a statement.
So far this month, oil prices are down almost 5%. Bloomberg reports that oil is heading for a fifth straight monthly loss, which would be the worst run since 2017.
The oil price has fallen from almost $80 per barrel a month ago to below $70 earlier this month amid concerns about the US and Chinese economic outlook. Markets are also on edge about the risk of a US default on debt due to a debt ceiling deadlock. The global crude benchmark is down about 5% in May.
At the start of April, petrol prices were hiked by 37c a litre, while diesel was cut by between 47.5c and 73.5c.
This brought the price of a litre of 95 unleaded petrol to R23.34 in Gauteng, compared to R21.84 a year before – and a record price of R26.74 in July last year.
The wholesale diesel price was increased to R20.15 a litre. As recently as in November last year, diesel cost close to R25.50.
"[The expected] decreases [for June] are positive and will ease pressure on our economy and on consumers. Of course, this is only one indicator, and we cannot ignore higher interest rates and food prices but a decrease to fuel costs will make a difference to many," the AA says.
Comments
Research Reports
Projects
Latest News
Showroom
In 1958 John Deere Construction made its first introduction to the industry with their model 64 bulldozer.
VISIT SHOWROOM
FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
