The Automobile Association (AA) has returned with predictions for the changes in fuel price for June 2021. These are predictions that the AA has made based on the unaudited mid-month fuel price data released by the Central Energy Fund. In them, the AA says we could expect a small decrease in petrol but an increase in everything else.
Fuel price change predictions for June 2021.
The AA predicts the following:
- Petrol: 1 cent decrease.
- Diesel: 20 cent increase.
- Illuminating paraffin: 25 cent increase.
“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.” – AA.
The AA does not that the oil price is still very vulnerable to change due to the ongoing COVID-19 lockdowns. Especially with the new variants. Because of this and other factors, these fuel price predictions are still likely to change for the June announcement by the Department of Mineral Resources and Energy.
“Nothing should be taken for granted until the global vaccination drive has surpassed the threshold needed for herd immunity,” – AA.
We can be thankful for the current strengthening of the Rand that is helping fuel price not increase even more. The AA says, 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 a nett gain of around 11 cents against the dollar.”
Source: AA