Fuel price update: Another big cut expected for May
Johannesburg - South African motorists enjoyed one of the biggest fuel price decreases ever in April, with petrol falling by up to R1.88 and diesel by R1.35, although most people didn't feel the benefit due to the nationwide lockdown.
However, there is further good news for May, with late-month data from the Central Energy Fund pointing towards another significant price cut.
Next month’s fuel price calculation will be based on international oil price data up to April 29, and with just two days to go, the current month-average numbers are pointing towards a price decrease of R1.73 a litre for 95 Unleaded petrol and R1.46 for low-sulphur 50ppm diesel. The CEF has not listed the data for 93 Unleaded, and in April that decrease was 12 cents less than that for 95 ULP.
Assuming a R1.73 per litre petrol price cut, a litre of 95 Unleaded will cost motorists R11.53 at the coast, from May 6, and R12.23 in Gauteng.
The price cuts are due to weaker international oil prices, with Brent Crude listed at $22.95 a barrel at the time of writing. Consider that in 2018 oil breached the $80 mark.
Unfortunately South Africans won’t enjoy the full benefit of rock-bottom international oil prices as taxes and levies reportedly make up around 40% of the fuel price equation, which we will explain in more detail in a separate article soon, and the weak rand has also been eroding the fuel price relief to some degree.
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