Johannesburg – Recent rand strength means that South African motorists can look forward to lower fuel prices in June.
Based on late-month fuel price data released by the Central Energy Fund, the Automobile Association has predicted a petrol price drop of up to 26 cents a litre early next month, bringing the pump price for 95 Unleaded down to around R13.53 in Gauteng and R13.04 at the coast.
Diesel and paraffin are expected to fall by 20 cents a litre.
The AA says that June’s fuel price relief is mostly due to the rand advancing against the US dollar for most of the month, while lower international crude oil prices have also aided the cause.
Although oil prices did rise towards the middle of the month on news that Russia and Saudi Arabia planned to extend their production cuts in a bid to curb the global over-supply situation, prices have since retreated.
The AA expects oil prices to remain stable for the foreseeable future, which could shield us against any sudden currency swings in the wrong direction.
"With political uncertainty set to continue, our medium-term outlook for the fuel price is that lower international petroleum prices will be key to maintaining local fuel price stability if the rand weakens again," the AA added.