AA forecasts petrol down, others up in June fuel move
28 May 2021 | From Arrive Alive
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The Automobile Association (AA) is forecasting that petrol users are set for some month-end relief at the pumps, while other fuel users will pay more when the Department of Mineral Resources and Energy announces adjusted fuel price for June. The AA was commenting on unaudited month-end fuel price data released by the Central Energy Fund.
The Association is predicting that petrol will be 11 cents a litre cheaper in June. Diesel, meanwhile, is set to increase by about 22 cents a litre and illuminating paraffin by 21 cents.
"The Rand continued to strengthen against the US dollar throughout May, while international oil prices remained mostly flat. But 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," notes the AA.
The AA says 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,” says the AA.
The Association says 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 concludes.
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