Fuel prices drop as levies rise
Although fuel prices are predicted to drop in April, most of the benefit of the decreases will be wiped out by the increases to the general fuel and Road Accident Fund (RAF) levies.
According to the Automobile Association (AA), the general fuel levy will increase by 30c, and the RAF levy by 9c, on April 1.
Based on the current data, the AA predicts that petrol will decrease by 51c a litre, diesel by about 27c a litre and illuminating paraffin by 32c.
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“This means that while motorists may have expected the current price per litre of petrol to drop substantially, they will now only see it going down by around 12c a litre.
“Diesel users, on the other hand, will see an increase of 12c a litre, with the levies eating up any gains,” the AA says.
The association notes that international petroleum prices have continued to decline, leading to the expected drops at the end of the month.
“The Rand / US dollar exchange rate had remained nearly flat since the end of the month, meaning South Africans were likely to see the most of the benefit of the oil price drops.
“The Rand has shed around 4c against the dollar since the start of March.
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“If this period of relative stability in the exchange rate continues, the currency will only have a small influence on the fuel price at month end,” the AA concludes.
