Good news about fuel prices going into the Easter weekend
Any decrease in the fuel price is a welcome relief, particularly with the Easter weekend and with the subsequent increases in traffic looming.
The AA is predicting a decrease in the price of fuel, diesel and paraffin for April.
According to the latest figures from the Central Energy Fund, the decrease to 95ULP is noted at 1.5c/litre, while the decrease to 93ULP is given at just under 4c/litre. Diesel is showing more notable decreases of around 78c/litre, while illuminating paraffin is set to fall by R1.39/litre.
“The main driver behind the decreases is lower international product prices, while the higher average rand/US dollar exchange rate is counter-balancing these gains. The weaker rand is eroding around 40c/litre of the decreases, meaning these decreases could have been more significant had the rand been stronger throughout March,” the AA noted in a press statement on March 16.
The association indicated that the Department of Mineral Resources and Energy may still make adjustments to the zone differential costs (the cost of transporting fuel from coastal to inland areas), and the slate levy.
“The good news, though, is that if adjustments to zone differential costs and the slate levy are made, petrol prices are not likely to increase significantly, and diesel and illuminating paraffin prices are still set to come down. The diesel decrease is particularly important because it is a major input cost in the manufacturing, mining and agricultural sectors, and a decrease in this fuel could prevent immediate rising costs in goods and services,” said the AA.
More good news is that the two main levies on fuel, the General Fuel Levy (GFL) and the Road Accident Fund levy, will not be increasing this year.
The adjustments, once finalised, will come into effect on April 5.
Source: AA
