AA predicts a mixed bag for fuel prices in June
A mixed bag of fuel prices are expected next month when the Department of Mineral Resources and Energy announces the fuel price adjustments.
Some consumers will breathe a sigh of relief while others are likely to dig deeper into their pockets.
The Automobile Association (AA) says it expects petrol to drop by 1 cent a litre, but diesel looks set for an increase of 20 cents a litre.
Commenting on mid-month fuel price data released by the Central Energy Fund, AA spokesperson Layton Beard said paraffin is also slated to go up by 25 cents.
“Although the rand has performed quite well against the US dollar, it hasn’t been enough to offset some of the gains made by the international petroleum prices and that’s why we are forecasting this mixed picture.
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“This is still early days and we’ll have to see what the numbers tell us over the next two weeks before we head into an official adjustment by the Department of Mineral Resources and Energy going into June.”
After several weeks of stability, international oil prices have started to climb again, with a slight peak in the first week of May before a modest pullback.
Beard adds the oil prices are still vulnerable to lockdowns caused by resurgences of Covid-19.
At the beginning of April, diesel saw a sharp increase between 63 cents and 65 cents while fuel increased by R1 a litre.
In May, petrol decreased by 9 cents per litre while the price of diesel dropped by 31 cents.
