June fuel price in favour of petrol as diesel climbs

The Automobile Association (AA) has tabled its final fuel price prediction for June by forecasting a continuing mixed outlook, still to the benefit of petrol.

Commenting on the final unaudited data report by the Central Energy Fund on Friday (28 May), the AA said it expects the price of petrol to decline by 11 cents a litre, while diesel and illuminating paraffin will rise by 22 and 21 cents respectively after the original forecast stood at 20 and 25 cents.

“The Rand continued to strengthen against the US dollar throughout May, while international oil prices remained mostly flat. But the sharp spike in oil at the start of the month is still spilling over into the data, with the prices of refined diesel having seen a bigger impact than petrol,” the association said.

“For as long as our currency continues to put in strong performances against the US dollar, the impact of rebounding international oil prices will be softened.”

It, however, added that the uptick in the price of diesel and paraffin comes as a blow not to only transport firms, but also consumers relying on paraffin for cooking as well as warmth as temperatures continue to drop. The adjustments will be implemented this coming Wednesday (2 June).