Mid-Month Forecast Shows May Fuel Prices Set to Drop

If you’re burning diesel for a living, May might just bring some relief to your wallet.

Mid-month data from the Central Energy Fund (CEF) is looking lekker for transporters, with wholesale diesel prices expected to drop by around 38 to 39 cents per litre.

Petrol’s also set for a small dip, but it’s diesel that’s getting the bigger break this time.

Here’s what the CEF’s latest numbers show:

• Diesel 0.05% (wholesale): down by 38c/l
• Diesel 0.005% (wholesale): down by 39c/l
• Petrol 93: expected to drop 15c/l
• Petrol 95: expected to drop 18c/l
• Paraffin: down 31c/l

The price relief comes from two main drivers – a global drop in oil prices and a bit of calm returning to the rand/dollar exchange rate after a rollercoaster start to April.

A global trade war triggered by US President Trump sent oil prices crashing – dropping about $10 a barrel – and that’s helped push local fuel prices into over-recovery territory.

But things weren’t all rosy – earlier this month, the rand nosedived thanks to political tension in the Government of National Unity (GNU), especially after the DA voted against the national budget.

The spat nearly tanked the GNU, sending the rand crashing to R19.93/$.

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Fortunately, talks between the ANC and DA cooled things down, and by mid-month, the rand had recovered slightly, sitting below R19/$ – just enough to ease some pressure off our pump prices.

Expected inland prices for May:

• Diesel 0.05%: R18.94
• Diesel 0.005%: R18.96
• Petrol 93: R21.36
• Petrol 95: R21.44

Coastal prices:

• Diesel 0.05%: R18.15
• Diesel 0.005%: R18.20
• Petrol 93: R20.57
• Petrol 95: R20.65

Just a heads-up, these are still mid-month forecasts. The Department of Mineral Resources and Energy will confirm the final fuel prices right before they kick in on the first Wednesday of May.

For now, transporters can take a bit of a breather. Let’s hope the trend holds – every cent counts when you’re hauling loads across South Africa.