JOHANNESBURG - It looks like South African motorists could be in for a fuel price breather in May, following months of hefty increases. But that’s assuming current trends persist.
According to the Automobile Association, mid-month data from the Department of Mineral Resources and Energy is pointing towards a 32 cents-per-litre decrease in the price of diesel.
However, petrol hasn’t fared as well, with the current average for the month pointing to a six cent increase. However, the petrol equation has turned positive in the last few days as the rand gained momentum, and if current trends continue then a small petrol price decrease could be possible. That’s assuming that there are no nasty oil price shocks on the horizon.
The rand has gained around 50 cents against the US dollar in the last month, and at the time of writing, it was trading at R14.22. Meanwhile, international petroleum prices have been stable over the same period, allowing the local currency to leverage its recent strength.
The AA reiterated its comments to the Parliamentary Portfolio Committee on Mineral Resources and Energy, in which it called for a review of both the fuel price structure and fuel taxes.
"Fuel is one of the most heavily-taxed commodities in South Africa. It is right and proper for the government to ensure that the pricing structure is still appropriate," the association said.
Petrol is now at an all-time high of R16.61 at the coast and R17.32 inland, for 95 Unleaded, while the cheaper 93 Unleaded retails for R17.10.
IOL Motoring