Fuel price update: High oil price hurts chances of petrol decrease

A higher crude oil price and a weak rand continues to reduce the optimism of South Africa’s motorists for a decrease in petrol and diesel prices in early July 2024.

NOTE: This is an updated article with the latest fuel projections

While the next fuel price changes are still three weeks away, the early numbers from the Central Energy Fund (CEF) still suggests that there is reason to be optimistic.

However, an increase in the oil price and a weaker rand in recent days has seen the overall picture worsening with each update.

Below, the latest projections as received from the CEF, effective Tuesday, 11 June.

If the market conditions were to remain consistent for the remainder of the month – an unlikely scenario with the rand/dollar exchange rate ever fluctuating and the oil price changing – a decrease of 123 cents is expected for petrol 93 octane motorists and a decrease of 117 cents for 95 users.

Meanwhile, diesel motorists would see something between a 61 to 68 cents per litre decrease.

Finally, illuminating paraffin is expected to decrease by 57 cents.

FUEL PRICE IN SOUTH AFRICA IMPACTED BY TWO MAIN FACTORS:

1. The international price of petroleum products, driven mainly by oil prices

2. The rand/dollar exchange rate used in the purchase of these products

Oil price

At the time of publishing the brent crude oil price is $82.41 a barrel.

Exchange rate

At the time of publishing the rand/dollar exchange rate is R18.57/$.

The final overall price changes for both petrol and diesel will be confirmed in the weeks ahead with the new prices coming into effect at midnight on Tuesday, 2 July.

Go easy on the accelerator until then, Mzansi.

THE CURRENT JUNE 2024 PETROL AND DIESEL PRICES (INLAND AND COASTAL):