SA fuel prices will benefit from a shock slump in the oil price, with Brent crude oil falling to four-year lows. (Coffeekai/ Getty Images)
Diesel and petrol prices are still on track for cuts in the first week of May, thanks to oil price weakness.
South African fuel prices are largely determined by international oil costs and the rand exchange rate, as oil is priced in dollars.
The latest estimate from the Central Energy Fund shows that the price of 95 unleaded petrol is due for a cut of around 18c a litre, while the wholesale price of diesel could be lowered by around 37c a litre. Final prices will be fixed at the end of April.
Brent crude oil fell to four-year lows of around $58 a barrel earlier this month. Brent is currently trading around $64 from $90 a year ago.
Oil prices are under pressure as the risk of global recessions will weigh on fuel demand, but a shock OPEC+ decision to raise production has also contributed. Brent is on track for the largest monthly loss since 2021, Bloomberg reported.
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The oil price weakness helped to neutralise a blowout in the rand-dollar rate, which reached almost reached R19.90 earlier this month amid shock over new US tariffs and fears that the DA will leave the business-friendly government of national unity. The rand has since strengthened and is currently trading around R18.55 – from below R18.30 a month ago.
Fuel prices are usually adjusted on the first Wednesday of May.
The price of 95 unleaded petrol was lowered by more than 70c at the start of April. At R21.62 a litre in Gauteng, it is now R3.50 a litre cheaper than a year ago.
Wholesale diesel prices were cut by more than 83c. The Gauteng wholesale price was lowered to R19.32 a litre, from R22.45 a year ago.
