Petrol price drop coming in South Africa

The Automobile Association (AA) said that South African motorists can expect a drop in petrol prices, quoting unaudited mid-month fuel price data released by the Central Energy Fund.

“International oil prices have been up and down in May,” the AA said. “The basic petrol price has traded between 740 and 780 cents a litre, which averages out 19 cents lower for the month.”

The Rand was has also been variable, trading at around 12 cents weaker to the US dollar over the month.

“This means that petrol prices will still drop by about ten cents a litre,” the AA said.

“However, the basic diesel price increased slightly, by two cents a litre, so diesel users are looking at an increase of about 14 cents a litre, with a nine cent hike for illuminating paraffin.”

Below are the expected petrol and diesel price increases for June 2019.

  • Petrol price decrease of 10c per litre
  • Diesel price increase of 14c per litre

The AA noted that this picture may change following the introduction of the Carbon Tax in June, which will add nine cents per litre to the petrol price and ten cents to the diesel price.

β€œIn effect, this means that petrol will decrease by only one cent a litre, while diesel will increase more significantly by around 24 cents a litre,” said the AA.

The AA said that any number of issues could impact the fuel price in the second half of the year, and advised against relying on fuel price stability in the short term.

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Petrol price drop coming in South Africa