Financially burdened South African consumers might get a fuel price breather in May, the Automobile Association said on Thursday.
This is due to stability on international petroleum markets and a stronger exchange rate, the association said in a statement, commenting on unaudited mid-month fuel price data released by the Central Energy Fund. The current data shows the prospect of a 32 cents-a-litre drop in the price of diesel, and 27 cents for illuminating paraffin.
For petrol a possible increase of 6 cents a litre is predicted, but the AA says the exchange rate's performance is coming very close to nudging petrol into a decline. So, if the current trends continue, there may be across-the-board relief from the recent series of fuel price hikes. The rand has gained almost 50 cents against the US dollar since mid-March.
The AA recently called on the Parliamentary Portfolio Committee on Mineral Resources and Energy 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 AA concludes.
In April petrol (95) increased by R1.00 per litre; petrol (93) by 95 cents per litre; diesel (0.05%) by 65 cents per litre; diesel (0.005%) by 63 cents per litre; and illuminating paraffin by 35 cents per litre.