Johannesburg - Inflation is hitting South Africans from all angles at the moment, but there could be some relief for motorists at the beginning of June.
Granted, we’re only 10 days into the month and much could change in the coming weeks, but if oil prices hold at current levels, and there are no major currency shocks, then significant petrol and diesel price cuts could be on the cards for June.
The latest daily snapshot from the Central Energy Fund, released on May 10, shows a significant over-recovery for both fuel types.
The month average is currently pointing to a reduction of R1.16 for 95 Unleaded Petrol and R1.12 for 93 Unleaded, and the latest daily stats are even further into the green, suggesting those aforementioned figures could grow.
On the diesel front, the data is currently pointing to a reduction of around R1.50 per litre for both grades.
This month saw diesel prices decrease by between 47 cents (50ppm) and 73 cents (500ppm), while both grades of petrol increased by 37 cents.
95 Unleaded currently costs R22.62 at the coast and R23.34 in the inland regions, where 93 Unleaded retails at R23.01.
International oil prices have fallen in the past month, with Brent Crude trading at $77.44 on Tuesday, down from around $85 a month ago. However, the US Energy Administration warns that a seasonal rise in oil consumption and a drop in OPEC crude oil output could put upward pressure on prices in the coming month.
Petrol still historically high
Petrol prices have risen significantly in the past two years, considering that 95 Unleaded cost R18.89 at the beginning of 2022 and R14.16 in January 2021.
The wholesale price of 500ppm diesel has risen by around R5 in the past two years, and the current cycle of decreases could help to slow down general inflation.
“Diesel is a big input cost in major sectors such as agriculture, mining and manufacturing and an increase here often contributes to increased prices of basic commodities,” the Automobile Association said.
However, it could take some time for this to filter through to consumer prices.