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Erm, thanks? ‘Laughably low’ petrol price decrease set for June

It feels like we’ve been undertipped, here. Yes, we are on course for a petrol price decrease in June – but it’s not much to write home about.

by Tom Head

17-05-2021 17:03

in News

Photo: Unsplash

Well, one cent is better than no cents, right? We doubt any motorists in Mzansi will be too grateful for the latest petrol price forecast, which shows that fuel costs will get cheaper in June as it stands – but only by the barest of all margins.

Forecast petrol price decrease for June? Technically, yes…

After reaching record-highs earlier this year – aided by soaring oil prices and some unfavourable tax hikes on our shores – the domestic petrol petrol price has climbed down every so slightly in the past few weeks. Next month, it currently looks like we will be taking another step forward – even if it’s just by moving one toe in front of the other:

– Petrol prices are on course to drop by just ONE CENT – and that’s the best news of the bunch…
– Diesel costs will increase by 20 cents, based on the current trajectory.
– Illuminating paraffin is set for the roughest ride, and it is predicted to be 25 cents more expensive in June.

A real mixed bag for motorists

Of course, the forecasts can quite easily fluctuate and change from their mid-month predictions. The AA has stated that the petrol price ‘rests on a see-saw’ for the next month or so – as a strongly-performing Rand offsets the issues created by unstable international oil values, and yes, those dreaded coronavirus variants…

In a battle that has been branded as ‘Oil vs Rand’, it seems that any petrol price decrease will prove to be laughably low:

“After several weeks of stability, international oil prices have started to climb again, with a slight peak in the first week of May. Nothing should be taken for granted until the global vaccination drive has surpassed the threshold needed for herd immunity. Oil prices are still vulnerable to lockdowns caused by resurgences of COVID-19.”
“Although the daily exchange rate has been wildly variable, the average rate has seen ZAR gain around 20 cents against the US dollar since the start of May. This means a net gain of 11 cents vs the dollar. The Oil-Rand see-saw will likely continue through the rest of May, and the month-end picture may be different to what’s currently being seen.”
AA statement