The Department of Mineral Resources and Energy has published the latest fuel price adjustments, which come into effect on Wednesday, 2 June 2021.
This is how fuel prices will change:
- Petrol 95: decrease of 10 cents per litre;
- Petrol 93: decrease of 10 cents per litre;
- Diesel 0.05%: increase of 20 cents per litre;
- Diesel 0.005%: increase of 21 cents per litre;
- Illuminating Paraffin: increase of 20 cents per litre.
The movement in prices is typically affected by two main factors – international petroleum costs, and the movement in the rand/dollar exchange rate.
The average international product prices for petrol, diesel and illuminating paraffin increased during the period under review.
The rand appreciated against the dollar during the period under review, on average, when compared to the previous period. The average rand/US dollar exchange rate for the period 30 April 2021 to 27 May 2021 was 14.1110 compared to 14.4480 during the previous period.
This led to a lower contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by 17.14 c/l, 16.32 c/l and 15.96 c/l respectively, the department said.
Commenting on unaudited month-end fuel price data released by the Central Energy Fund, the Automobile Association said that, while offering some relief to motorists, the rise in diesel prices will come as a disappointment to some businesses.
“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,” it said. “This will be disappointing news for transport companies who rely on diesel to power their fleets.
“It will also not be welcomed by citizens who use illuminating paraffin for cooking, lighting, and especially heating during the winter months.”
The association said the continuing strength of the rand is good news, though.
“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 said.
This is how the decreases will reflect at the pumps:
|Fuel (Inland)||May official||June official|
|0.05% Diesel (wholesale)||R14.46||R14.66|
|0.005% Diesel (wholesale)||R14.50||R14.71|