South African truck operators and motorists could see mixed fortunes at the pumps this week, with diesel prices expected to drop sharply while petrol is likely to become more expensive once again.
Based on the latest available fuel price data, diesel users could receive some welcome relief from Wednesday, 4 June, with wholesale diesel prices expected to decrease by as much as R3.60 per litre. Petrol users, however, are likely to face another increase of around R1.05 per litre.
For South Africa’s trucking industry, where diesel remains the lifeblood of freight transport, the anticipated diesel reduction could provide much-needed breathing room after months of punishing fuel costs.
Diesel Price Relief Expected
Current projections indicate that diesel 500ppm could decrease by approximately R3.60 per litre, while diesel 50ppm could drop by around R2.79 per litre.
If confirmed by the Department of Mineral and Petroleum Resources, the wholesale price of diesel 500ppm could fall to roughly R27.69 per litre in inland regions.
The expected reduction follows a period of unprecedented fuel price hikes that placed significant pressure on transport operators across the country.
In April, diesel prices surged by R7.37 per litre, followed by a further increase of R6.19 per litre in May, leaving many fleet owners and owner-drivers struggling with escalating operating costs.
Petrol Set to Rise Again
While diesel users may benefit from lower prices, petrol motorists are unlikely to share the same good news.
Petrol prices are currently expected to increase by around R1.05 per litre. Should the adjustment materialise, the price of 95 Unleaded could rise to approximately R26.81 per litre at the coast and R27.68 per litre in Gauteng.
The increase comes despite month-end data from the Central Energy Fund showing that petrol and diesel were in over-recovery territory.
Fuel Tax Relief Being Phased Out
A major factor behind the expected petrol increase is the gradual withdrawal of government’s temporary fuel tax relief measures introduced earlier this year.
From June, R1.50 per litre will be reintroduced to the petrol tax structure and R1.96 per litre to diesel. A further R1.50 per litre adjustment is expected in July as the tax regime returns to normal.
Although diesel is still expected to decrease overall this month, the tax adjustment has significantly reduced what could have been an even larger cut.
Oil Prices Remain a Key Risk
Global oil market developments continue to influence South African fuel prices.
Earlier spikes were linked to tensions in the Middle East and concerns over shipping through the Strait of Hormuz, a critical route for global oil supplies. Although oil prices have eased somewhat in recent weeks amid hopes of reduced tensions, uncertainty remains.
Government Looking at Long-Term Solutions
Meanwhile, Minister of Mineral and Petroleum Resources, Gwede Mantashe, has indicated that government is exploring longer-term solutions to address fuel price volatility.
Speaking during his recent budget vote, Mantashe said South Africa needs to reduce its vulnerability to international fuel price shocks and examine its heavy dependence on imported fuel products.
The official June fuel price adjustments are expected to be announced by the Department of Mineral and Petroleum Resources this week, with the new prices taking effect from Wednesday.
The latest SA Trucking News straight to your inbox!
