Fuel Price Decrease Expected for June

Following months of hefty increases across both diesel and petrol grades, the Central Energy Fund has presented some promising provisional data for fuel prices in June.

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The Central Energy Fund’s (CEF) data for the first week of May indicates an over-recovery in fuel prices, which, if it holds, could translate into lower prices at the pumps. The figures show that petrol prices are currently over-recovered by 34 cents per litre, while diesel sees a more significant over-recovery, ranging from 68 to 73 cents per litre. This potential reduction would be a welcome relief, particularly for petrol, which has experienced consecutive price increases over the last four months in 2024. As a refresh, fuel prices range between R25.49 per litre for 95 inland and R21.36 for 500 ppm diesel at the coast.

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The recent downtrend in oil prices and a stronger rand have contributed to the over-recovery but it is important to remember these figures represent early data, and fluctuations in market conditions could impact the final price adjustments made by the Department of Mineral Resources and Energy. Despite these encouraging signs, the fuel market remains volatile. Another factor to keep in mind with the provisional data is the pending voting day on 29 May, which could prove volatile with the rand trading against the US dollar.

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Despite all of this, the over-recovery trends will provide some reprive for South African motorists when they make their appointments with the pumps from June. The final fuel price, regulated by government, is adjusted every first Wednesday of the month – which will be the 5th of June.

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