Cape Town – South African motorists could see modest fuel price reductions in June, according to the latest data from the Central Energy Fund.
The data indicates a potential decrease of around 40 cents per litre for petrol and 75 cents for diesel. However, if current international oil price trends continue, the cuts could be smaller by month-end — possibly around 15 cents for petrol and 40 cents for diesel.
Brent Crude oil prices have stabilised at around $66 per barrel, slightly below the $66.40 average of the previous pricing period. While oil prices are having minimal impact on the outlook, the rand is providing relief.
The local currency is trading at an average of R18.38 to the US dollar this month, stronger than the R18.83 average recorded during the previous review.
Oil prices had climbed from around $61 earlier in May, spurred by optimism over easing trade tensions between China and the United States. Analysts have warned that this could be temporary, with the expiration of a 90-day trade truce likely to introduce renewed market uncertainty.
Rising supply levels from OPEC+ and potential additional volumes from Iran, pending geopolitical developments, are expected to help contain further oil price hikes.
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Compiled by Betha Madhomu
