South African vehicles celebrated one of the biggest declines in fuel prices ever in April, with oil dropping by up to R1.88 and diesel dropping by R1.35, but most people did not feel the gain because of the national lockdown.
However, there are other good news for May, with late-month data from the Central Energy Fund suggesting another major price drop.
The fuel price calculations of next month will be based on international oil prices by April 29 and the current month-average figures for 95 unleaded petroleum, and for low-sulfur 50ppm diesel, are just two days ahead, with R1.73 a liter falling. In April, this decrease was 12 cents less than the decrease for 95 ULP. CEF did not mention 93 unleaded results.
The unleaded R11.53 would cost motors on the coast from 6 May and R12.23 in Gauteng if they have been able to slash their fuel price per liter.The cuts are triggered by lower international oil prices, while at the time of writing Brent Crude was priced at $22.95 per barrel. In 2018 oil exceeded the $80 mark. Find this.
Unfortunately, South Africans are not going to benefit entirely from the low international prices as taxes and levies are estimated to constitute about 40% of the fuel price equation, and we are going to discuss this in a separate article shortly.
By Noni Nchwe