The price of fuels looks likely to change as we head into June 2021, with petrol showing the smallest of declines, but the price of diesel and paraffin will be going up.

Around the middle of the month, theAutomobile Association (AA) sends out a forecast on the price of fuel based on thenaudited mid-month fuel price data released by the Central Energy Fund.

As it stands, the AA is predicting the smallest of decreases for petrol, with a litre of petrol costing one cent less. Sadly both diesel and paraffin are both set to rise, with increases of 20 cents a litre and 25 cents a litre respectively.

"After several weeks of stability, international oil prices have started to climb again, with a slight peak in the first week of May before a modest pullback. Although there is still a re-balancing of global supply and demand taking place in oil markets, the current variations are starting to more closely resemble the picture we saw before the COVID-19 pandemic. This suggests that normal market forces are increasingly gaining the upper hand over last year's disruptive gluts which led to astonishing sub-zero prices for West Texas Intermediate (WTI) oil." says the AA.

The AA would like to point out that the prices can change rapidly and something like a lockdown can trigger a change."Nothing should be taken for granted until the global vaccination drive has surpassed the threshold needed for herd immunity," says the AA.

It's good to see the Rand and the exchange rate helping matters."Although the daily exchange rate has been wildly variable, the average rate has seen the local currency gain around twenty cents against the US dollar since the start of May. This means anett gain ofaround 11 cents against the dollar,” notes the Association.

The Association further notes that while the mid-month picture is indicating certain movements now, these are likely to change before the official adjusted price for June is announced by the Department of Mineral Resources and Energy later this month.

"The oil-versus-Rand see-saw will likely continue through the rest of May, and the month-end picture may be somewhat different to what's currently being seen," the AA concludes.

Further Reading

SA Petrol Price– Where Does Our Money Go?

5 Ways to Beat the Fuel Price Hike

Most Fuel Efficient Budget Cars in SA

Most Fuel-Efficient Double-Cab Bakkies in SA

5 Fuel-Saving Car Features & How They Work

Most Fuel Efficient Budget Cars in SA

Most Fuel Efficient Diesel Cars in SA

Most Fuel Efficient Petrol Cars in SA