According to the CEF, both grades of petrol are projected to decrease by up to 19 cents per litre, while diesel prices are set to fall by 37 cents per litre. This follows significant cuts in April when petrol prices dropped by 58 cents per litre for 93 octane and 72 cents per litre for 95 octane. Diesel prices also saw reductions of between 84 and 86 cents per litre.

Portfolio Manager at Benguela Fund Managers, Grant Nader, attributes the anticipated declines to a combination of falling global oil prices and the strengthening of the Rand.

“The Rand-oil price has dropped 13% for the month, which is very positive,” Nader explained.

“It does suggest further petrol price cuts, given the average decrease is around 20 cents per litre for petrol and approximately 37 to 38 cents per litre for diesel.”

--SABC/ChannelAfrica--