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Motorists can expect an increase in fuel price for June

South African motorists can expect an increase of close to R1,00 per litre for fuel in June.


Preliminary figures from the Central Energy Fund show that there was an under-recovery of 98 cents per liter of 95-octane petrol for the month of May.

The under-recovery on 93-octane petrol is 90 cents.

Owners of diesel vehicles however, could see a slight drop in the price of diesel.

There was an over-recovery of 2 cents per liter of diesel.

The biggest driver behind the possible increase in petrol prices is the increase in the price of Brent Crude oil, which clawed back to $33 per barrel earlier on Friday.

Brent Crude prices dropped to historic lows in April, due to a lack of demand worldwide.

The price dropped to $15,97 on 17 April, with many countries imposing lockdowns and restricting travel due to the Covid-19 pandemic.

Oil produces subsequently decided to decrease production in an attempt to address demand shortages, and to support the recovery of the Brent Crude price.


Weaker Rand

The Central Energy Fund also tracks the Rand Dollar exchange rate, to determine the over or under-recovery on Brent Crude.

The Rand weakened against the US Dollar over the past month, but showed some signs of recovery earlier on Friday, which could lead to a smaller increase in the price of petrol.

The Rand is currently trading at R17,67 to the US Dollar.

The department of Energy is expected to announce the fuel price adjustments for June on the last weekend of May.

The new petrol price will then be implemented on the first Wednesday of June.

Content created and supplied by: tonnies (via Opera News )

Brent Crude Central Energy Fund South African

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