More pain at the pumps: Fuel set to rise again in June

Petrol and diesel expected to rise again in June

South African motorists face further increases at the pumps in June, with early projections pointing to petrol rising by about R2.20 per litre and diesel increasing by at least R2.50 per litre.

Recent large monthly jumps

Earlier in May the Department of Petroleum and Mineral Resources confirmed sharp adjustments to fuel prices driven by volatile global oil markets: petrol rose by R3.27 per litre and diesel by R6.19 per litre, one of the largest monthly increases in recent memory.

Why prices may climb again in June

Analysts point to two main factors that determine local fuel prices: the international price of petroleum products and the rand/dollar exchange rate used to buy those products. At the time of publication the Brent crude price was $106.50 a barrel and the rand/dollar exchange rate was R16.49/US$.

Temporary levy relief set to phase down

The National Treasury introduced a temporary R3.00 per litre reduction in the General Fuel Levy in April. That relief could expire or begin phasing out on 2 June. The phase-down would directly add to June pump prices:

• Petrol: the relief drops from R3.00 to R1.50, adding R1.50/litre to the June price
• Diesel: the relief drops from R3.93 to R1.96, adding R1.97/litre to the June price

Projected increases and what they mean

Alongside the levy changes and global market movements, early projections indicate petrol could rise by about R2.20/litre and diesel by at least R2.50/litre in June, meaning many motorists will pay noticeably more at the pumps if these projections hold.

Latest listed prices for April and May

The published inland and coastal fuel prices for April and May are listed below.

Inland April and May

• Petrol 93: R23.25 (April) R26.52 (May)
• Petrol 95: R23.36 (April) R26.63 (May)
• Diesel 0.05%: R25.90 (April) R32.09 (May)
• Diesel 0.005%: R26.11 (April) R32.30 (May)
• Illuminating Paraffin: R24.21 (April) R28.43 (May)

Coastal April and May

• Petrol 93: R22.46 (April) R25.73 (May)
• Petrol 95: R22.53 (April) R25.80 (May)
• Diesel 0.05%: R25.07 (April) R31.26 (May)
• Diesel 0.005%: R25.35 (April) R31.54 (May)
• Illuminating Paraffin: R23.16 (April) R27.38 (May)

What happens next

With the levy relief scheduled to change on 2 June and international oil and exchange rates remaining key drivers, motorists should prepare for the possibility of higher pump prices next month.