South Africans can anticipate relief at the pump next week as both petrol and diesel prices are slated to drop on Wednesday, 5 June.
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According to late-month unaudited data from the Central Energy Fund (CEF), petrol prices are expected to decrease by approximately R1.06 per litre, while diesel is forecasted to see a reduction ranging between 90 cents for 50ppm and R1 for the 500ppm variant.
These significant over-recoveries could potentially drive down the price of 95 Unleaded petrol to around R23.64 per litre at coastal regions and R24.43 in Gauteng. Meanwhile, 93 Unleaded is anticipated to decrease to approximately R24.09.
However, these projections come with a caveat, as factors such as the Slate Levy, designed to compensate fuel companies for international oil price fluctuations during the month, could still influence the final fuel prices. These prices are scheduled to be announced by the Department of Mineral Resources and Energy early next month.
Motorists who have been filling up with petrol have faced substantial price hikes this year, with the cost of 95 Unleaded rising by R2.93 since January. Diesel has seen a comparatively milder increase, with 50ppm up by R1.46 and 500ppm by R1.45.
The anticipated price reductions in June are primarily attributed to declining international oil prices, contributing roughly 73 cents to the petrol price over-recovery for the month. Additionally, a strengthened rand is bolstering this trend by an extra 32 cents.
However, looking ahead, the election outcome poses a potential risk. Should a coalition scenario unfavourable to the international business community materialise, it could lead to local currency depreciation. Such a scenario would likely have downstream implications for fuel prices starting from July onwards.
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Picture: Sharon Sheretol / Gallo Images