June is likely to bring bad news for motorists who fill up with diesel, as mid-month data released by the Central Energy Fund is pointing towards a price increase, but petrol prices could come down slightly if current trends persist.
Petrol is showing a marginal over-recovery of around one cent per litre, but that’s effectively an average for the month so far. The latest daily prices are even more encouraging, however, and if current trends persist motorists could be in for a decrease of 10 cents or more.
This will be of little consolation however, given that petrol prices are currently at an all-time high, with 95 Unleaded Petrol currently retailing at R16,51 at the coast and R17,23 in the inland regions, where the less expensive 93 Unleaded Petrol costs R17.01.
It’s bad news for those with diesel vehicles however, with the mid-month data pointing to a price increase of around 20 cents a litre. This will almost cancel out the 30 cents per litre decrease that was announced at the beginning of May.
But why are prices so high?
Apart from the steep taxes that account for almost R6 per litre, international oil prices have risen heavily since the Covid-related crash last year. Brent Crude Oil was trading at $68.71 at the time of writing. However, the South African rand is starting to play to our favour, having recently appreciated to the $14,00 – $14,20 range, from an average of around $14,50 at the beginning of the month.
“After several weeks of stability, international oil prices have started to climb again, with a slight peak in the first week of May before a modest pullback,” the Automobile Association said.
“Although there is still a re-balancing of global supply and demand taking place in oil markets, the current variations are starting to more closely resemble the picture we saw before the Covid-19 pandemic.”
Watch this space for further petrol and diesel price updates later in the month.