SA fuel prices to drop in May due to stronger rand
After recent hikes, there’s relief for motorists with petrol to be about 13c/l cheaper and diesel 32c
Due to a stronger rand motorists can expect a breather in May from the series of fuel price increases earlier in the year.
Fuel prices have made a turnaround from last month, with across-the-board price reductions in all fuel types expected when the department of mineral resources & energy announces adjustments for May.
This is according to the Automobile Association (AA), commenting on unaudited month-end fuel price data released by the Central Energy Fund.
Petrol is expected to be about 13 c/l cheaper, with diesel showing a 32c/l drop and illuminating paraffin down 23c.
This follows petrol reaching record highs in April, with the retail price of R17.32/l for 95 unleaded inland surpassing the previous record of R17.08 set in late 2018. Motorists were also hit with a 65c hike to the wholesale price of diesel last month.
The increases included the respective 16 c/l and 11 c/l fuel and Road Accident Fund (RAF) levies on petrol and diesel announced by finance minister Tito Mboweni in his Budget Review on February 25. The hikes were also necessitated by the rand depreciating against the dollar during the period under review.
In announcing fuel price relief for motorists in May, the AA said: “The exchange rate has continued its pleasing strengthening trend against the US dollar. International petroleum prices, which increased slightly in the first two weeks of April, have held steady since.”
“As we head into winter, South Africans who use paraffin for lighting, cooking, and heating especially will no doubt be glad at this news. For its part, the AA is hopeful the recent streak of price stability will continue to provide more price relief to fuel users in the short to medium term,” it said.
Fuel prices are adjusted on the first Wednesday of every month.
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