Consumers can expect significant decreases in fuel prices across the board in June, based on current unaudited mid-month data released by the Central Energy Fund (CEF), the Automobile Association said on Thursday, May 16.
According to the data, the wholesale price of diesel is expected to decrease by around 74 c/l and the price of illuminating paraffin by almost 69 c/l. The price of 95 unleaded petrol (ULP) was expected to drop by around 61 c/l and 93 ULP by around 63 c/l, the AA said.
The main drivers behind the anticipated decreases are the strengthening rand and lower international oil prices, the CEF data noted.
Movements in international oil product prices decreased significantly at the beginning of May, resulting in an expectation of lower fuel prices aided by the rand trading stronger against the dollar since the end of last month.
“While fuel is still more expensive now than it was at the beginning of the year, these forecast decreases do offer some relief,” said the AA. Although the figures based on mid-month data are promising, the AA cautioned that this might change before adjustments for June were announced.
