The fuel price outlook for June is a mixed bag for motorists and commuters, with petrol set for another increase and diesel seeing a very welcome decrease.
The Department of Mineral and Petroleum Resources has confirmed that the price of both grades of petrol will increase by R1.43 per litre from Wednesday, June 3. However, diesel is set for significant decreases of R3.25 at 500 ppm and R2.62 at 50 ppm.
This means that a litre of 95 unleaded petrol will now cost R27.19 at the coast and R28.06 in Gauteng, where the cheaper 93 grade will rise to R27.95.
The wholesale price of diesel will decrease to R27.05 at the coast and R27.92 inland, with 50ppm falling to R27.88 and R28.75, respectively. Retail margins will typically add around R2 to R3 to these amounts.
The month-end, unaudited data released by the Central Energy Fund actually painted a far more positive picture, in which 95 unleaded petrol could have decreased by 46 cents, while diesel showed over-recoveries of between R4.93 and R5.56.
However, Treasury’s temporary fuel tax relief measures that were announced in April are due to be phased out from June, with R1.50 being reintroduced to the petrol tax tally and R1.96 to diesel. A further R1.50 will be added in July when the tax structure returns to normal.
Further to that, the Slate Levy, which compensates fuel companies for price fluctuations in the preceding month, has increased from R1.22 to R1.57 for the month of June.
June’s fuel price adjustments come in the wake of record increases in the preceding months, which saw petrol rise by R3.06 per litre in April and R3.27 in May, while diesel surged by R7.37 and R6.19 respectively.
This came after US strikes on Iran caused international oil prices to spike, with the latter placing a chokehold on the critical Strait of Hormuz oil route. However, hopes of an imminent peace deal have seen prices subside slightly during May.
A notable development on the local front that could offer longer-term relief is South Africa’s Minister of Mineral and Petroleum Resources, Gwede Mantashe, who is pushing for the establishment of a new state-owned company aimed at addressing rising fuel prices.
In his budget vote speech two weeks ago, Mantashe said South Africa needs a long-term solution to fuel price volatility, as well as a deeper examination of its heavy reliance on fuel imports.
