More relief for SA motorists as petrol price to drop 10c/l

JOHANNESBURG - The petrol price will be slightly lower from today, while diesel is getting pricier.

The Department of Mineral Resources and Energy announced that the price of both grades of petrol will be cut by 10c per litre on June 2.

Unleaded 95 will retail at R17.13 (K28) per litre while unleaded 93 will retail at R16.91 (K27) per litre.

Diesel (0.05 percent sulphur) will be hiked by 20c per litre and diesel (0.005 percent sulphur) will increase 21c per litre.

A 20c increase is on the cards for illuminating paraffin.

In May, petrol (both 93 and 95 ULP and LRP) dropped by 9 cents per litre. This was after a record hike of 100 cents per litre for petrol in April, which left petrol in R17/l territory. Revised fuel and road accident fund levies had also kicked in.

Because South Africa imports most of its oil, fuel prices in South Africa are determined primarily by the international oil price, which is priced in dollars.

The rand-dollar exchange rate therefore also has an impact on the price South Africans pay at the pump.

While the rand (R13.79/$) is currently trading at its best level since 2019, oil prices have rallied this month.

Bloomberg reports that oil is on course for another monthly gain in May, the fourth of five this year, as investors wager that progress in combating the Covid-19 pandemic will spur energy consumption.

The recovery is most evident in the US, Europe and China, while virus waves continue to roil economies in parts of Asia and Latin America. The rally in crude is part of a broader advance in commodities.

Brent crude oil is currently trading at around $69 a barrel, from $38 a year ago. – FIN24.