While South African consumers are still reeling from load shedding and its impact on businesses and the economy; large-scale looting and corruption, the Automobile Association (AA) has warned cash-strapped motorists to brace themselves for a petrol price hikes in April
After analysing the unaudited data from the Central Energy Fund, the AA has estimated that petrol (both 93 and 95) will increase by 25/l.
However, the good news is that diesel will decrease by about 20c/l and there will be a significant decrease to the price of illuminating paraffin of around 68c/l.
In a statement the association said the weaker Rand to the US Dollar exchange rate contributed to the increases in petrol and clawing back some of the decreases in diesel and illuminating paraffin, with lower international oil prices having a reverse impact.
However, in the case of diesel and illuminating paraffin, the weaker Rand is not resulting in increases,” the AA said.
According to AA, the unaudited data must be looked at with three considerations.
“Firstly, this data is mid-month, so the numbers should change positively before the official adjustment is made by the Department of Mineral Resources and Energy at month end. The second factor is that the Rand appears to be steadying against the US Dollar, which should bring further relief, specifically to the petrol prices,” AA added.
The association also welcomed the decision of Finance Minister Enoch Godongwana who heeded its call not to increase fuel levies in his February Budget speech. The levies are traditionally increased in April every year.