Fuel Price Outlook For May: Petrol And Diesel Decreases Looking Likely

Aprils fuel price cuts look set to be followed by further decreases in May, but thanks to a weaker rand, the savings wont be as substantial this time around.

Mid-month data from the Central Energy Fund CEF points to petrol price decreases in the region of 20 cents for 95 Unleaded and 18 cents for 93 Unleaded, while a slightly stronger over-recovery on diesel implies price cuts in the region of 40 cents for both grades.

However, with the latest daily data dipping even further into the green, reductions of 30 cents for petrol and 50 cents for diesel are certainly possible if current trends persist.

That is currently a big if, given the significant economic volatility seen since the first week of April, when US President Donald Trump announced sweeping global tariffs, only to backtrack the following week with a 90-day reprieve on many of the proposed levies after a significant market crash.

The net result has been a significant depreciation of the South African rand. Although by mid-April it had bounced back to R18.93 to the US dollar, from its April 9 low of R19.69, the local currency is still 3 weaker than it was at the beginning of the month.