More fuel price woes on the horizon as carbon tax is introduced in June

Those who were hoping for relief in June will be disappointed as the new CO2 tax and uncertain global oil prices do the cost of petrol and diesel no favours

15 May 2019 - 17:27 By Staff Reporter & AASA
SA's new CO2 tax will raise the cost of fuel in June.
SA's new CO2 tax will raise the cost of fuel in June.
Image: Theo Jeptha

Fuel data for May is showing a listless fuel price picture. This is according to the Automobile Association (AA) which quotes unaudited mid-month fuel price data released by the Central Energy Fund.

"The overall picture is of little change," the AA says. "The rand has slipped marginally by 13c against the US dollar since the department of energy's surprise early announcement of the May fuel price on Sunday, April 28," it adds.

The association said the international oil price had also ebbed and flowed, with the landed basic price of petrol dropping by more than 60c a litre in the first days of May before regaining ground after the election.

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"The result is a mixed picture. For petrol, the rand's weakness was mostly a counterpart of oil's retreat, pointing to a 7c-a-litre reduction at month end," the AA said.

"Diesel fared worse, with a slight increase of 12c a litre on the cards, and illuminating paraffin showing a 9c rise."

However, the AA reminds drivers the forthcoming carbon tax is due for introduction on June 5, and will add an additional 9c a litre to the petrol price, and 10c 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 AA concluded.

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