Transporters may get some relief at the pumps as the latest data released by the Central Energy Fund (CEF) points to a drop in the price of diesel and an increase in the price of petrol in April.
According to the Automobile Association, the latest unaudited CEF data released this week, shows that there may be a decrease in the wholesale price of diesel of around 20c/l, and a significant decrease to the price of illuminating paraffin of around 68c/l, but petrol prices look set to rise by around 25c/litre.
“The weaker rand to US dollar exchange rate is contributing to the increases in petrol and clawing back some of the decreases to diesel and illuminating paraffin, with lower international oil prices having the reverse impact. However, in the case of diesel and illuminating paraffin, the weaker rand is not resulting in increases,” the AA said in a statement.
However, the AA said the unaudited data could still change before month end and it appeared that the rand/dollar exchange rate could improve.
“Firstly, data is mid-month, so the numbers should change positively before the official adjustment is made by the Department of Mineral Resources and Energy at month end. The second factor is that the rand appears to be steadying against the US dollar, which should bring further relief in specifically the petrol prices,” the AA said.
Another consideration was that fuel levies would not be increasing in April and would stay at the same rate as they did in 2022.
“Fuel levies are traditionally increased in April, but the Minister of Finance heeded calls by the AA and in his February Budget Speech indicated that this would not happen this year. Although not a saving as such, any increases would have added additional pressure to fuel prices, and we again welcome his decision not to increase these rates,” the AA said.
The official fuel price adjustment will be announced before it comes into effect on 5 April.
