Potential fuel price breather expected in May

According to the Automobile Association (AA), stability on international petroleum markets and a stronger exchange rate have given fuel prices a breather.

AA said the current data predicted a 32 cents-a-litre drop in the price of diesel and 27 cents for illuminating paraffin.

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“Petrol hasn’t fared as well, with a slight increase of six cents a litre predicted. However, the exchange rate’s performance is coming very close to nudging petrol into a decline, and if the current trends continue, there may be across-the-board relief from the recent series of price hikes at month-end,” the AA commented.

The AA added that the rand had continued on a strengthening trend which emerged in mid-March and had gained almost 50 cents against the US dollar since that time.

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“Meanwhile, international petroleum prices have been stable over the same period, allowing the rand to leverage its recent strength.”

The AA reiterated its comments to the Parliamentary Portfolio Committee and said, “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.”

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