Petrol and diesel prices are currently on track for cuts at the start of June. 

The latest estimate from the Central Energy Fund (CEF) shows that the price of 95 unleaded petrol is due for a decrease of around 62c a litre, while the wholesale price of diesel could lowered by between 74c and 77c a litre.

Illuminating paraffin may be cut by almost 70c.

South African fuel prices are largely determined by international oil and fuel costs and the rand exchange rate, as oil is priced in dollars. 

Oil is currently trading around its lowest levels in seven weeks and has fallen from close to $90 a barrel at the end of April to below $83 this week.

A warm winter in the northern hemisphere has dampened fuel demand, with available stockpiles larger than expected – especially in the US. Meanwhile, indications of a ceasefire in Israel and a cooling in tensions between that country and Iran has eased concerns about the oil-rich Middle East.

International diesel prices are also under pressure amid the growing popularity of liquefied natural gas-powered trucks in China, Bloomberg reported.

Meanwhile, the rand is trading at its strongest level since mid-January – around R18.35/$ – amid renewed optimism that US rates may be cut, along with subsiding fears of an ANC-EFF coalition following the election and strength in commodity prices. 

However, the final fuel prices for June will only be set at the end of May. Fuel prices will be adjusted on the first Wednesday of June. 

At the beginning of this month, petrol prices were hiked by 37c a litre – reaching levels last seen in October 2023. Diesel prices were cut to the lowest levels since February this year.