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Watch: Motorists can look forward to financial relief at the petrol pumps
Motorists can finally look forward to some financial relief at the pumps, with petrol and diesel price cuts expected from Wednesday, June 7.
Official diesel and petrol price adjustments for June are set to be announced by the Department of Energy only early next week.
However, late-month data from the Central Energy Fund is painting a positive picture.
According to this unaudited data, petrol prices are likely to fall by around 70 cents a litre, while diesel could come down by about 80 cents.
Once again, nothing is set in stone as yet and the Slate Levy, which compensates fuel companies for fluctuations that take place within the preceding month, could push things either way.
Assuming that petrol goes down by 70 cents, motorists will be paying around R21.92 for a litre of 95 Unleaded at the coast and R22.64 inland, where 93 ULP will cost R22.31.
The predicted diesel and petrol price decreases come as a result of weak international oil prices, with Brent Crude trading at $72.60 at the time of writing, down from its range of $82 to $85 the previous month.
However, were it not for the weak rand resulting from persistent load shedding and the allegations that SA sold weapons to Russia, a petrol price reduction of around R1.25 per litre would have been on the cards, with diesel falling by R1.32.
Nonetheless, the projected fuel price cuts of 70 to 80 cents are significant and will have a positive effect on inflation.
“These decreases are positive and will ease pressure on our economy and on consumers. Of course, this is only one indicator, and we cannot ignore higher interest rates and food prices but a decrease to fuel costs will make a difference to many,” the AA said.
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