Motorists should brace for another petrol shock
Business Live - Apr 16th, 08:20
Unexpectedly strong international fuel prices have raised the likelihood of an unwelcome fuel price hike for petrol users in May.
This is according to the Automobile Association (AA), which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.
The figures suggests that petrol may increase by 56c a litre in May, while diesel is showing a reduction of 5c and illuminating paraffin is down by a cent. If the increases take place it will be the third successive increase in fuel prices in 2019.
“The international product price of diesel climbed somewhat in the first half of April, while petrol has made a substantial jump,” the AA says.
“Diesel’s smaller increase is likely due to variations in international refining capacity, as well as the approaching end of the northern hemisphere winter when demand for diesel for use in peaking power plants and as a heating fuel diminishes.”
The association says that the rand has appreciated quite strongly against the US dollar since the end of March, with the daily exchange rate used for fuel price calculations improving from over R14.60/$ on March 31 to under R14/$ currently.
“The ground gained by the local currency has cushioned some of the blow, with diesel currently showing a slight decrease. But petrol users are in for a shock,” says the association.
“Price stability in illuminating paraffin is welcome as SA heads into winter, during which many households will be using paraffin for heating. But the rise in petrol price is a cause for concern when our economy is already in difficult waters,” the AA says.
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