PETROL PRICES TO DROP MINORLY

It is anticipated that petrol prices will undergo a minor reduction at the beginning of July, while diesel prices may face an increase.

Based on the latest data from the Central Energy Fund, considering current oil and rand prices, diesel prices are expected to rise by approximately 10c to 15c per litre, depending on the grade. On the other hand, petrol 95 and 93 unleaded may see a decrease of 6c per litre and 15c per litre, respectively.

However, the final prices are yet to be determined, as fuel prices are adjusted on 5 July. In South Africa, fuel prices are primarily influenced by international oil costs and the exchange rate of the rand, as oil is priced in dollars.

Brent crude oil has experienced a slight strengthening from $74 to $77 per barrel since the beginning of the month. However, oil prices are still under pressure due to a significant supply flow from Russia and concerns about the slower-than-expected rebound of the Chinese economy.

After reaching a low of close to R20/$ last month amidst concerns about South Africa’s ties with Russia, the rand has since recovered and is currently trading around R18.17/$.

At the start of June, petrol prices were reduced by 71c per litre, while diesel prices experienced a decrease of approximately 80c per litre. As a result, the price of a litre of 95 unleaded petrol in Gauteng stood at R22.63, compared to R24.17 a year earlier and a record high of R26.74 in July of the previous year.

Currently, the wholesale diesel price in Gauteng is R19.31 per litre. Just last November, diesel prices were close to R25.50. Diesel prices have returned to levels seen before the invasion of Ukraine, which caused a significant spike in oil prices.