Fuel prices are expected to decline in June. According to the latest information from the Department of Energy announced this morning, the price of gasoline 93 (ULP & LRP) in Gauteng can decrease on Wednesday, 7 June 2017 by 24,4 cents per liter and the price of diesel with a 0.005% sulphur content by 19,2 cents per liter, says independent economist Fanie Brink.
The main reasons for these expected price changes can be attributed to the decrease in the crude oil price to almost $48 per barrel at the beginning of the month. The decreases in the fuel could have been higher, but the crude oil price rose again rapidly to $54,45 a barrel at which it traded yesterday. The price has risen in anticipation of an extension of the agreement between the largest oil producing countries to further reduce their production. The decision will be taken today by the Organisation of Petroleum Exporting Countries in Vienna, Switzerland, and it is expected that the production reduction could be extended by at least nine months into 2018.
Despite this rise in the crude oil price, the average petroleum products prices were still lower this month than in April, could result in 17,0 cents per liter decrease in the gasoline price and 11,9 cents per liter in the diesel price.
The strengthening in the exchange rate to below R13 against the US dollar brought further reductions of 7,4 cents per liter in the gasoline price and 7,3 cents per liter in the diesel price about for next month.
The final price changes will be announced by the Minister of Energy.
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