Price of fuel expected to decrease slightly

1970-01-01 02:00

JOHANNESBURG — Motorists can be cautiously optimistic about a slight drop in fuel prices in May, according to the Automobile Association (AA).

The organisation made this prediction based on unaudited mid-month data released by the Central Energy Fund.

In January, motorists experienced some relief when prices dropped by R1,23 a litre for 95 octane petrol and R1,27/litre for 93 octane petrol. This was due to the weakening of the rand/dollar exchange rate offset by a drop in international oil prices.

In February the retail prices of both grades of petrol dropped by 93c/litre and the maximum retail price for LPG tumbled a massive R1,50/kg.

In March petrol went up by 96c/litre, while diesel rose by 74c and paraffin by 73c. The increase came after a drop in fuel prices as the global oil price plummeted.

The AA pointed out that the average rand/dollar exchange rate has stabilised over the past month, reducing volatility in the fuel price.

At the same time, international petroleum prices have retreated to a more moderate level, with reasonable stability evident over the past month.

According to the AA, current data suggests a petrol price drop of about 17c/litre, with diesel and illuminating paraffin both down by about 22c/litre.

“It remains to be seen whether the recent fuel price volatility has truly subsided, but the prevailing picture is that motorists will enjoy some relief at the pumps in May after the steep fuel price hikes of March and April,” the AA concluded.

In coastal areas 95 ULP and LRP went up by R1,60 and in Gauteng by R1,62 on April 2. At the same time, 93 ULP and LRP increased by R1,56 and R1,54 in Gauteng and the coast respectively.

Motorists at the coast currently fork out R12,46 for a litre of 95 ULP and LRP, while at the Reef consumers pay R12,89 and R12,67 respectively for 95 ULP and LRP.

The reasons for April’s increase included the combined 80,5c for the Fuel and Road Accident Fund (RAF) levies on petrol and diesel as announced in the February budget.

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