Petrol prices latest: Petrol, diesel prices on course for huge drop

Despite the rand crashing to record low levels last week, petrol prices currently still look set for a cut at the start of June at least for now.

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EXPECTED PETROL PRICES IN JUNE

Based on the latest oil and rand prices, the latest data from the Central Energy Fund shows that diesel prices could be lowered by R1.06 to R1.13 a litre, depending on the grade.

Petrol prices (both 95 and 93 unleaded) could be cut by around R1 a litre. Illuminating paraffin currently looks set for a 62c a litre cut.

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Diesel drivers are not left behind as they may also see another cut in petrol prices, with recent data pointing to an over-recovery between R1.27 and R1.36 per litre.

These are the expected petrol prices changes:

• Petrol 93: decrease 113 cents a litre;
• Petrol 95: decrease 111 cents a litre;
• Diesel 0.05%: decrease 136 cents a litre;
• Diesel 0.005%: decrease of 127 cents a litre;
• Illuminating paraffin: decrease of 79 cents a litre.

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The Department of Energy (DOE) has noted that its daily snapshots are not predictive and do not encompass other possible modifications, such as slate levy adjustments or retail margin changes.

The department determines these adjustments, which consider various factors, at the end of the month.

Domestic petrol prices are primarily governed by the rand/dollar exchange rate and international oil prices. In South Africa, the fuel price is adjusted on the first Wednesday of every month based on these two factors.

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THE UNSTABLE RAND

The rand has been on a downward spiral of late following allegations by the US ambassador that South Africa supplied arms to Russia, adding pressure to the already buckled currency.

The rand’s performance usually affects the fluctuation in petrol prices. On 12 May, the domestic currency reached its weakest point on record at R19.47 to the greenback however has made a slight recovery to date.

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