Fuel price relief likely in June, says AA

Motorists can look forward to significant fuel price cuts in June, says the Automobile Association (AA).

Based on unaudited midmonth data from the Central Energy Fund (CEF), 95 ULP is expected to drop by about 61c/l, and 93 ULP by about 63c/l.

The wholesale price of diesel is expected to decrease by about 74c/l and the price of illuminating paraffin by 69c/l.

The main drivers behind the decreases are a strengthening rand and lower international oil prices, according to the AA.

“Movements in international product prices decreased a lot at the beginning of the month resulting in expectant lower fuel prices aided by the downward trajectory of the rand trading stronger against the dollar since the end of last month,” the AA said in a statement.

“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 95 ULP will dip slightly to below the R25/l mark and the price of 93 ULP 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,” it said.

The association said while the mid-month data looked promising, the picture might change at month-end before the adjustments for June were made.

At the beginning of May, petrol increased by 37c/l while the wholesale price of 0.05% sulphur diesel dropped by 30c/l and 0.005% sulphur diesel by 36c/l .