Cape Town - It is still early in the month but the latest unaudited fuel data from the Central Energy Fund (CEF) revealed both good and bad news for motorists with a possible increase of 25 cents to petrol prices, a 20 cents decrease to the wholesale price of diesel, and a 68 cents decrease to the price of illuminating paraffin.
The Automobile Association (AA) said: “The weaker rand to US dollar exchange rate is contributing to the increases in petrol and clawing back some of the decreases to diesel and illuminating paraffin, with lower international oil prices having the reverse impact.
“However, in the case of diesel and illuminating paraffin, the weaker rand is not resulting in increases,” the AA said.
The AA said the CEF’s unaudited data needed to be observed with three considerations.
First, that this data was mid-month, so the numbers should change positively before the official adjustment is made by the Department of Mineral Resources and Energy (DMRE) at month end.
Second, the AA said that the rand appeared to be steadying against the US dollar, which should bring further relief in specifically the petrol price.
Third, fuel levies would not be increasing in April and would remain at the same rate as they did in 2022.
“Fuel levies are traditionally increased in April, but the minister of finance heeded calls by the AA and in his February Budget speech indicated that this would 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 AA said.
The official adjustment of the fuel prices comes into effect on April 5, the first Wednesday of April.