Fuel prices likely to drop this month: CEF

File image: A service station in South Africa.

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The latest data from the Central Energy Fund (CEF) indicates that fuel prices will likely drop in May.

Both grades of petrol are set to decrease by up to 19 cents per litre, with both grades of diesel set to fall by 37 cents per litre.

The anticipated reduction in fuel prices for this month follows relief at the pumps in April.

Petrol prices were cut by 58 and 72 cents per litre for 93 and 95 respectively, while diesel came down by between 84 and 86 cents per litre.

Portfolio Manager at Benguela Global Fund Managers, Grant Nader, has attributed the declines predicted for May to drops in global oil prices and firmness in the rand.

Nader says, “Point to point, the Rand oil price has dropped 13% for the month. So that’s really positive and it does point to a further cut in petrol prices given that we’re using average only over around say 20 cents give or take.”

He says, “On normal petrol and around 37- 38 cents on diesel, but remember, this is on top of a nice cut we saw in April and potentially further to come if we see this kind of level maintained for the month of May.”