Big price increases expected for diesel in June

Mid-month data released by the Central Energy Fund predicts an increase in prices of all fuel types, with petrol showing the smallest price hike.

Diesel drivers can expect a much larger increase in prices for this fuel type.

This was reported by BusinessTech.

The expected price increases for all fuel types in South Africa are detailed below:

• Petrol 93 – Increase of 2 cents per litre
• Petrol 95 – Increase of 1 cent per litre
• Diesel 0.05% – Increase of 18 cents per litre
• Diesel 0.005% – Increase of 19 cents per litre
• Illuminating Paraffin – Increase of 25 cents per litre

It is important to note that these are not the final increases, as the Department of Energy makes adjustments based on a review of the entire month – meaning the outlook can change before month-end.

Further factors impacting the price of fuel levels are the rand and US dollar exchange rate, as well as international oil prices.

“At mid-May, the stronger ZAR/USD exchange rate is contributing to an over-recovery of around 10 cents per litre, However, changes to international product prices are swallowing up those gains, leading to diverging trends for petrol and diesel,” concludes the report.