Carbon tax expected to cancel out petrol price drop in June - AA

Motorists can expect petrol price to drop by about 10 cents a litre in June, the Automobile Association predicted on Tuesday, based on unaudited month-end data released by the Central Energy Fund.  But the introduction of the carbon tax - which will add nine cents a litre to the petrol price - will likely cancel out the drop.

The AA foresees that diesel users are looking at an increase of about 14 cents a litre. When the carbon tax is added, the increase is larger.

"In effect [....] petrol will decrease by only one cent a litre, while diesel will increase more significantly by around 24 cents a litre," noted the AA.

Variable international oil prices, and an equally unpredictable rand/US dollar exchange rate combined to provide the mixed picture, said the group. 

"International oil prices have been up and down in May. The basic petrol price has traded between 740 and 780 cents a litre, which averages out 19 cents lower for the month."


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