Despite recent rand weakness, the fuel outlook for June remains positive with significant reductions expected for all fuels, says the AA.
Commenting on unaudited mid-month data from the Central Energy Fund (CEF), the AA says lower international product prices are the reason behind the predicted decreases.
In the last month the oil price has reduced from more than $80 a barrel to about $70 a barrel.
“The weaker rand-dollar exchange rate, though, is taking away from the forecast decreases, which would have been more significant had the rand been stronger,” notes the AA.
“As it stands, both grades of petrol are heading for decreases of around R1/l, while the decreases to diesel are currently standing at around R1.30/l. Importantly, the data is showing that illuminating paraffin, which is such an important fuel at this time of the year, is headed for a decrease of around 80c.”
The association says any decreases to fuel prices will bring relief to cash-strapped consumers which, if realised, will bring prices down to rates last seen in February.
The outlook for June is made mid-month and will change before the official adjustment for June is made.
“Nonetheless, we remain confident that significant decreases will be seen to fuel prices for June,” the association concludes.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.