NATIONAL NEWS - The Central Energy Fund’s latest data shows that there might be some petrol price relief in June but only by a small fraction due to the introduction to the carbon tax.
The CEF showed that variable international oil prices, and an equally unpredictable Rand/US dollar exchange rate, could provide a mixed picture for fuel prices in June.
During May, international oil prices have been fluctuating. The basic petrol price has traded between 740 and 780 cents a litre, which averages out to 19 cents lower for the month. The Rand was also a huge factor trading between roughly R14.15 and R14.60 to the US dollar. The Rand was about 12 cents weaker over the month.
The AA predicted that there will still be a petrol price drop by about ten cents a litre in June.
Despite a slight recovery for petrol in May, the introduction of Carbon Tax on 5 June, will most likely cause the prices to rise adding 9 cents to petrol and 10 cents to diesel. “In effect, this means that petrol will decrease by only one cent a litre, while diesel will increase more significantly by around 24 cents a litre,” said the AA.
Paraffin could see a 9 cents hike in June.
“Any number of current issues could impact the fuel price in the second half of the year, and we advise against relying on fuel price stability in the short to medium term. We suspect there may be more economic storms ahead,” said the AA.