The Department of Energy has released the fuel price adjustments for June set to be implemented from tomorrow (3 June).
In accordance with the predictions from the Automobile Association (AA) last week, the price of all grades of petrol will rise by R1.18 per litre, diesel by between 21 and 22 cents per litre and illuminating paraffin by 40 cents per litre.
“The Rand appreciated slightly, on average, against the US Dollar (from 18.47 to 18.17 Rand per USD) during the period under review when compared to the previous one. This led to lower contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by over 6.00 c/l,” the Department said.
It however remarked that, “the average Brent Crude oil price increased from 20.00 USD/barrel to 27.63 USD/barrel. The main reason for the higher oil prices is that OPEC, Russia and other oil producing nations agreed to reduce oil production by about 10 million barrels per day during a meeting in April 2020. This effectively removed about 10% of global supply of oil”.
“The international prices of all refined petroleum products also increased following that of crude oil resulting in average under recoveries of over 125.87 c/I on petrol and 28.90 c/l on diesel and 46.41 c/l on Illuminating Paraffin. The demand for refined products also increased as the easing of lockdown started in the US and other countries. It is important to note that the price of petrol is still on average R2.00 lower than it was at the beginning of the lockdown,” it concluded.