Motorists in South Africa can expect some relief at the pumps next week, although a fluctuating exchange rate has limited the extent of the potential savings.
According to late-month unaudited data from the Central Energy Fund (CEF), petrol prices are likely to drop by approximately 20 cents per litre, while both grades of diesel could see a more significant reduction of around 38 cents per litre.
If confirmed, the price of 95 Unleaded petrol would decrease to R20.63 per litre along the coast and R21.42 in inland areas. Meanwhile, 93 Unleaded could fall to around R21.31 per litre inland.
This follows larger decreases recorded in April, when 95 Unleaded fell by 72 cents and 93 Unleaded by 58 cents. Diesel prices saw even sharper declines, dropping between 84 cents (500ppm) and 86 cents (50ppm).
The primary factor behind the projected decreases for May is the continued dip in international oil prices. Brent Crude, which was trading at around $74 per barrel at the start of April, fell to approximately $64 by the end of the review period, averaging close to $65 throughout the month.
However, the full benefit of these lower oil prices has been undercut by the volatility of the South African rand. The weakened exchange rate is estimated to have reduced the potential fuel price cuts by as much as 30 cents per litre.
Although the rand has since recovered from its earlier lows, including a dip beyond R19 to the US dollar during heightened trade tensions linked to former US President Donald Trump’s tariff decisions, the impact of that earlier instability is still reflected in fuel pricing calculations. As of 30 April, the rand had strengthened to R18.64 against the dollar.
It is important to note that these figures are based on unaudited data. The Department of Mineral Resources and Energy is expected to confirm the official fuel price adjustments early next week.
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