…By Lola Smith for TDPel Media.
As the international oil price continues to decline, South African motorists can look forward to positive news regarding petrol prices next month.
According to BusinessTech, mid-month data from the Central Energy Fund indicates an over-recovery in petrol prices, which is expected to result in a decrease in prices.
The anticipated drop is estimated to be between R1.11 and R1.13 per litre.
Diesel drivers will also likely benefit from a decrease in fuel prices, as recent data suggests an over-recovery ranging from R1.27 to R1.36 per litre.
Here are the expected changes:
1. Petrol 93: a decrease of 113 cents per litre.
2. Petrol 95: a decrease of 111 cents per litre.
3. Diesel 0.05%: a decrease of 136 cents per litre.
4. Diesel 0.005%: a decrease of 127 cents per litre.
5. Illuminating paraffin: a decrease of 79 cents per litre.
It’s important to note that the Department of Energy (DOE) cautions that their daily snapshots are not predictive and do not account for other potential adjustments, such as slate levy modifications or retail margin changes.
The department finalizes these adjustments, considering various factors, at the end of the month.
The cost of domestic petrol in South Africa is primarily influenced by the rand/dollar exchange rate and international oil prices.
The fuel price in the country is adjusted on the first Wednesday of each month based on these two factors.
However, it’s worth mentioning that the rand has been experiencing volatility recently, partly due to allegations that South Africa supplied arms to Russia, as stated by the US ambassador.
This has added pressure to the already weakened currency.
On May 12, the rand reached its lowest point against the US dollar at R19.47, although it has slightly recovered since then.