Motorists in South Africa will be relieved with petrol price falling, but diesel prices are going in the opposite direction.
Households and consumers have been presented with some good news this week. Stats SA shows that consumer inflation is easing quicker than anticipated by the market.
Data from the Central Energy Fund (CEF) points to petrol prices dropping between 8 and 16 cents per litre.
Economists say a self-adjusting slate levy might limit the decrease in prices. But wholesale diesel prices are expected to increase slightly.
According to the CEF, diesel is currently showing an under-recovery of roughly 13 to 18 cents per litre.
The rand’s strength, one of the main drivers of fuel prices, has recovered significantly in June from record highs seen in May.
PETROL PRICE FALLING, DIESEL RISING
The inflation print for May 2023 came in at 6.3%, down from 6.8% in April. Economists expect this trend to accelerate, falling back into the South African Reserve Bank’s target range by the end of the year.
The eased inflation has been driven by food and fuel prices, which have come down from record highs in recent months.