Truckers and heavy-duty vehicle owners, rejoice! Diesel prices are set to drop significantly from Wednesday, June 5, according to the Department of Mineral Resources and Energy (DMRE).
This news is bound to bring a sigh of relief to those of us in the trucking industry who have been feeling the pinch at the pumps.
From midnight, the cost of diesel will decrease by between R1.08 for 50ppm and R1.18 for 500ppm.
This means the wholesale price of 50ppm diesel will now be R20.40 per litre at the coast and R21.16 inland.
However, keep in mind that the unregulated retail prices will be over R2 higher than the wholesale price.
Petrol Prices Also on the Decline
But it’s not just diesel that’s getting cheaper.
Read | Big June Fuel Price Cuts Now More Likely as Oil Hits 3-Month Low
Petrol prices are also set to drop by R1.24 per litre for both grades.
After the reduction, 95 Unleaded will cost R23.46 at the coast and R24.25 inland, while 93 Unleaded will retail for R23.91 inland.
For a smaller car with a 30-litre tank, this means a saving of R37.20.
A 50-litre refuel in a medium vehicle will save you R62 compared to last month’s prices. This is good news for everyone, from daily commuters to long-distance drivers.
Why the Drop in Fuel Prices?
The decrease in fuel prices for June is primarily due to lower international oil prices in May, resulting in an over-recovery of 76 cents per litre for petrol.
Additionally, a stronger rand contributed 30 cents, and a reduced Slate Levy added another 18 cents to the price cuts.
Looking Ahead
While the current drop is certainly welcome, it’s still early to predict what July’s prices will look like.
The international oil prices have been trending lower, with Brent Crude listed at $78 (R1,459) as of June 4.
However, for this trend to continue, the rand needs to remain stable, which hinges on the outcome of ongoing government coalition talks.
The Automobile Association has praised the latest price decreases but called on the government to review the fuel pricing mechanism.
They suggest looking for permanent solutions to avoid future fuel price shocks.
For truckers and all motorists, the drop in fuel prices offers some much-needed financial relief.
But for long-term stability, a closer look at the factors influencing these prices is crucial.
In the meantime, let’s enjoy the savings at the pump and hope for even better news in the coming months.