Global Courant
Refueling car at a gas station close-up
Gasoline prices are expected to see a small reduction in early July, while diesel prices may rise.
Based on the most recent data from the Central Energy Fund, taking into account the current oil and peripheral prices, the diesel price is expected to increase by about 10 cents to 15 cents per litre, depending on the class. On the other hand, gasoline 95 and 93 unleaded may see a drop of 6 cents per liter and 15 cents per liter respectively.
However, final prices are yet to be determined as fuel prices will be adjusted on July 5. In South Africa, fuel prices are primarily influenced by international oil costs and the rand exchange rate, as oil is priced in dollars.
Brent crude oil has risen slightly from $74 to $77 a barrel since the start of the month. However, oil prices are still under pressure from significant supply flows from Russia and concerns about the Chinese economy’s slower-than-expected recovery.
After hitting a low of nearly R20/$ last month amid concerns over South Africa’s ties to Russia, the rand has since recovered and is currently trading around R18.17/$.
At the beginning of June, gasoline prices were cut by 71 cents per litre, while diesel prices fell by about 80 cents per litre. As a result, the price of a liter of 95 unleaded petrol in Gauteng was R22.63, compared to R24.17 a year earlier and a record high of R26.74 in July of the previous year.
Currently, the wholesale price for diesel in Gauteng is R19.31 per litre. Last November diesel prices were close to R25.50. Diesel prices have returned to pre-invasion levels of Ukraine, causing a significant rise in oil prices.
