The long-expected petrol price rebound is set to happen in June, according to the Automobile Association (AA). Looks like the decreases are over as the petrol price is set to rise in June 2020.
The end of month figures have been updated, you'll find a more up to date estimate here.
Based on the current data, the AA is predicting up to 50 cents a litre increase for petrol, while diesel fans can rejoice with a decline of around 56 cents. "In a dramatic reversal of last month's oil swings, international product prices used to calculate South Africa's basic fuel price have nearly doubled since their lows at the end of April," the AA explains. "Over the same period, the Rand has settled in around the level of R18.40 to the US dollar, almost three Rand weaker than just three months ago prior to the advent of the Covid-19 panic and multiple downgrades of our economy by ratings agencies."
Towards the end of April 2020, the oil price fell and the Rand steadied, resulting in yet another decrease. However, the oil price has come back strongly in May 2020 as global refining capacity's imbalance has been addressed. Still, we've had quite a good run with most grades of petrol about R4 cheaper a litre now than they were at the beginning of the year.
As always, we'll have the changes to the petrol/diesel price towards the end of the month.