Big petrol price cut coming in June

Petrol and diesel prices are on track for significant cuts at the start of June as Brent crude oil reaches its lowest level in three months.

According to week three data from the Central Energy Fund (Cef), petrol and diesel prices show an over-recovery of between 83 and 90 cents per litre.

Petrol prices could decrease by 84 to 85 cents per litre, and diesel prices could be cut by 86 to 90 cents per litre.

This is about 20 cents per litre more than mid-month estimates, pointing to a much more positive direction for motorists.

Meanwhile, the rand is trading at its most substantial level since the final quarter of 2023. On Wednesday, the rand was at R18.17/$.

So far, the local currency has gained almost 5% in a month amid renewed optimism that US rates may be cut, subsiding fears of an ANC-EFF coalition following the election, and strength in commodity prices.

The final petrol prices for June will be set next week. Petrol prices will be adjusted on the first Wednesday in June.