Citizen Reporter
1 minute read
17 Apr 2015
5:00 pm

Slight reduction in petrol price expected in May

Citizen Reporter

A slight reduction in the petrol price is on the cards for May, the Automobile Association (AA) said.

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The AA were commenting on unaudited mid-month data released by the Central Energy Fund.

“The average Rand/US dollar exchange rate has stabilised over the past month, reducing volatility in the fuel price,” the AA said.

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

The petrol price increased by R1.62 a litre at the beginning of April. The price on 95 octane petrol increased by R1.62 in Gauteng and R1.60 on the coast.

Reasons given by the energy department for the increase were higher international prices for petrol, diesel, and paraffin, and the weakening of the rand against the US dollar.

The AA said the current data suggested a reduction in petrol prices of about 17 cents per litre, with diesel and illuminating paraffin both down by about 22 cents per 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 said.