The price of fuel increased sharply last month, due to an adjustment in the basic fuel price, Road Accident Fund (RAF) levies, fuel levy increases and an increase in pipeline transport costs for the fuel itself.
A small drop in the price of fuel is expected for June, and this may amount to a decrease of 6 cents per litre.
“Petrol prices rose by 54 cents in May, but a current over-recovery between April 26 and May 21 2019 hints at a cut of six cents per litre in June,” Momentum said to BusinessTech.
Although the price of fuel is predicted to decrease, a new carbon tax will be introduced on June 5, 2019. This is the same day that the new fuel price is expected to kick in, and this will add another 9 cents per litre on fuel, and 10 cents per litre of diesel.
This means that even with an over-recovery currently predicted for the price of fuel, motorists will likely experience an increase at the pumps.
Below are the predicted prices of fuel per litre, based on data by the Central Energy Fund (CEF):
95 Petrol – R16.70
93 Petrol – R16.52
0.05% Diesel – R15.11