Automobile Association (AA) of South Africa predicts a drop in petrol price but an increase for diesel
JOBURG – With carbon tax to be introduced in June, petrol prices will look slightly different.
Automobile Association (AA) of South Africa has forecast a mixed picture for the fuel price for the month of June.
The AA said in a statement, “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.”
Due to the rand being 12 cents weaker in the month of May, AA said, “Petrol prices will still drop by about 10 cents a litre. However, the basic diesel price increased slightly, by 2 cents a litre, so diesel users are looking at an increase of about 14 cents a litre, with a 9-cent hike for illuminating paraffin.”
However, with a carbon tax to be introduced in June, the overall picture will change, the tax will add 9 cents a litre to the petrol price and 10 cents per litre to the diesel price.
Meaning the petrol price will decrease by only 1 cent, “While diesel will increase more significantly by around 24 cents a litre.”
AA concluded that many factors can influence the petrol price and relying on fuel stability in the medium term is it advisable.
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