AA predicts slight drop in fuel price

14:01 (GMT+2) Wed, 15 May 2019

Fuel data for May is showing a listless fuel price picture with the Automobile Association predicting a seven cents a litre reduction in the price of fuel at the end of the month.

Commenting on unaudited mid-month fuel price data from the Central Energy Fund, the AA said that "the overall picture is of little change".

It said the Rand had slipped marginally by thirteen cents against the US dollar since the Department of Energy's surprise early announcement of the May fuel price on Sunday, April 28.

The AA said that the international oil price has also ebbed and flowed, with the landed basic price of petrol dropping by over 60 cents per litre in the first days of May before regaining ground after the election.

"The result is a mixed picture. For petrol, the Rand's weakness was mostly a counterpart of oil's retreat, pointing to a seven cents-a-litre reduction at month end," the AA said.

"Diesel fared worse, with a slight increase of 12 cents a litre on the cards, and illuminating paraffin showing a nine-cent rise."

However, the AA reminds its members that the forthcoming Carbon Tax is due for introduction on June 5, and will add an additional nine cents a litre to the petrol price, and ten cents to the diesel price.

"Our hope is that the new government will immediately set out its policy agenda which has a direct impact on fuel prices," the Association concluded.