Energy

Here is the expected petrol price for June 2017

Staff Writer

 ·15 May 2017

Motorists can expect lower fuel prices in June thanks to a lower crude oil price, and a weaker dollar against the local currency.

This would come as a relief to motorists following a big hike in prices earlier this month, fueled by a crumbling of the rand against the US dollar in the wake of the cabinet reshuffle by president Jacob Zuma, and the subsequent ratings downgrades to junk by global ratings agencies.

Data from the Department of Energy shows that the price of gasoline 93 (ULP & LRP) in Gauteng would see a drop of 23.8 cents per litre (19.3 cents for 95 ULP), while the price of diesel with a 0.05% and 0.005% sulphur content, would decline by 20.3 cents per litre.

According to independent agricultural economist, Fanie Brink, the expected decrease in price is as a result of a lower crude oil price, which traded below US$50 per barrel over the first half of May.

The decline in the average international prices of petroleum products due to the lower crude oil price could see gasoline prices fall by 19.4 cents per litre and the diesel price by 15.9 cents per, the economist said.

Brink said that the the average R/$ exchange rate has strengthened to around R/$13.40 over the same period which could result in a further decrease the price of gasoline by 4.4 cents per litre, and in the price of diesel, by 4.4 cents per litre next month.

The rand firmed 1.5% against the dollar on Monday amid news of fresh missile tests in  North Kore, and by weak data.

Here’s what you can expect to pay in June, based on the latest information (based on current inland prices).