South African logistics businesses can expect a marginal decrease in the price of diesel in April based on unaudited data released by the Central Energy Fund (CEF) according to the Automobile Association (AA).
However, the AA said the data also pointed to a slight increase in petrol prices, while the price of illuminating paraffin was expected to drop marginally.
According to the latest CEF data, ULP95 is expected to rise by around 10c/litre, and ULP93 by around 9c/l. The wholesale price of diesel is expected to decrease by between 34c/l and 38c/l while the cost of illuminating paraffin is slated to come down by around 47c/l.
“The decrease in diesel and paraffin prices is certainly good news. Diesel is a big input cost in major sectors such as agriculture, mining, manufacturing, and retailing, and an increase here often contributes to increased prices of basic commodities,” said the AA.
“If the rand/US dollar exchange rate, as well as the movement in international product prices, continues on its current downward trajectory, there is a likelihood that by the time the Department of Mineral Resources and Energy makes the official adjustment for next month, the under-recovery will be significantly less and result in a much-needed price decrease,” said the AA.
The AA is offering consumers who plan to drive to their holiday destinations over the Easter period, free holiday vehicle checks until 2 April and has advised motorists to contact its participating dealers to book an appointment.
