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Petrol price June 2019 - AA expects some relief for petrol users, diesel price to increase

May 15, 2019
Petrol price June 2019 - AA expects some relief for petrol users, diesel price to increase

June 2019 might see some relief petrol price relief for users, but diesel will fare worse

Port Elizabeth - The Automobile Association of South Africa’s June 2019 petrol price forecast will see some relief for petrol users, but there is bad news for diesel users.

In May, fuel prices rose again after motorists were hit with another massive fuel price hike in April 2019 following the introduction of new fuel taxes while global oil prices were rising. A weaker rand has also made the situation worse.

According to the AA on Wednesday, fuel data for May 2019, from unaudited mid-month fuel price data released by the Central Energy Fund, "is showing a listless fuel price picture”.

"The overall picture is of little change. The Rand has slipped marginally by thirteen cents against the US dollar since the Department of Energy's surprise early announcement of the May fuel price on Sunday, April 28," the AA said.

It added that the international oil price has also ebbed and flowed, with the landed basic price of petrol dropping by over 60 cents per litre in the first days of May before regaining ground after the election.

"The result is a mixed picture. For petrol, the Rand's weakness was mostly a counterpart of oil's retreat, pointing to a seven cents-a-litre reduction at month end,” the AA said.

"Diesel fared worse, with a slight increase of 12 cents a litre on the cards, and illuminating paraffin showing a nine-cent rise."

However, the AA warned that the forthcoming Carbon Tax is due for introduction on June 5, and will add an additional nine cents a litre to the petrol price, and ten cents to the diesel price.

"Our hope is that the new government will immediately set out its policy agenda which has a direct impact on fuel prices.”

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