On 5 June 2024, the Department of Mineral Resources and Energy will be adjusting the petrol and diesel prices.
While many motorists are bracing for a potential hike, predictions from the Central Energy Fund (CEF) suggest a pleasant surprise: fuel prices are set to drop.
According to the CEF’s forecast on 27 May 2024, South Africans can look forward to the following price adjustments in the first week of June 2024:
- Petrol 93: Decrease of 100 cents per litre.
- Petrol 95: Decrease of 100 cents per litre.
- Diesel 0.05% (wholesale): Decrease of 101 cents per litre.
- Diesel 0.005% (wholesale): Decrease of 92 cents per litre.
- Illuminating paraffin: Decrease of 81 cents per litre.
This potential decrease in fuel prices is attributed to a stronger Rand and lower global oil prices throughout May 2024.
Earlier this month, the Automobile Association (AA) explained that international product prices had dropped significantly at the beginning of May. The AA further noted that this, combined with the Rand’s stronger performance against the Dollar since late April, has contributed to the expected reduction in fuel costs.
“The expectant decreases are good news for consumers who have been battered and bruised by these prices in the past couple of months. With these expected decreases, the price of 95ULP will dip slightly to below the R25/l mark and the price of 93ULP will cost R24.52/l. 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.
While the forecast is promising, the final decision on price adjustments rests with the Department of Mineral Resources and Energy. The CEF, as a state-owned entity, reports directly to the Department, which will have the ultimate say in the new fuel prices for June.
What are your thoughts on the anticipated fuel price drop? Share your views in the comment section below.