Motorists might get some good news next week as the prices of both petrol and diesel are expected to go down.
Weaker international oil prices and an a steady rand relative to the US dollar have been cited as the main reasons for the expected decrease in the price of all grades of fuel come next week Wednesday, 5 April.
Petrol down
Previous projections alluded to an increase in fuel prices, especially the price of petrol. However, the Automobile Association (AA) reports that the final unaudited data findings by the Central Energy Fund points to petrol decreasing by four cents a litre for 93 unleaded and a scant one cent for 95 unleaded.
Earlier this month, data showed a different picture with an uptake in the area of 20 cents being likely.
Win for diesel and paraffin
The most significant downturn though will the price of diesel – the AA says it will drop by 78 cents a litre from the previous 68 cents.
By far the most prominent though is illuminating paraffin, which will fall by a substantial R1.78 a litre.
Petrol drop could have been more
The AA also said the price of petrol could have decreased by a lot more.
“The weaker rand is eroding around 40 c/l of the decreases, meaning the decreases could have been more significant had the rand been stronger throughout March,” it said in a statement.
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No levy changes welcomed
The association also welcomed the decision of no changes being made to the general fuel levy and the Road Accident Fund levy this year after remarking in a previous statement that any changes would’ve “come as a shock many [consumers] simply cannot afford”.
“These levies are traditionally increased in April, but the Minister of Finance heeded calls by the AA and in his February Budget speech said that this will not happen this year.
“Although not a saving as such, any increases would have added additional pressure to fuel prices, and we again welcome his decision not to increase these rates for 2023,” the association said.
Caution advised
At the same time, it also warned that any last minutes adjustments before next week Wednesday involving what is known as the Zone Differential Costs, which applies to fuel being transported from the coast to inland, could put a damper on the eventual price if deemed applicable by the Department of Mineral Resources and Energy.
In the same breath, it, also added, “the good news 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 to this fuel could prevent immediate rising costs in goods and services.”
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